You’ve paid off your debts, your credit score has increased, and you have saved enough to make a down payment. You also qualified for a loan.
Here are some considerations before you buy a house because, there are additional costs beyond the initial purchase.
First to consider is calculate what to spend. You need to plan for mandatory fees such as property taxes, homeowner insurance, and homeowner association dues (if your desired community as an HOA). These fees are not necessarily fixed; they can go up, and you need to be prepared to pay them. Work hard to keep your mortgage payments to no more than 28 percent of your salary so that the additional cost is manageable.
Second item is, consider researching for available programs to help with your purchase cost. Check out HUD.gov for state programs you may qualify for. You can also ask your lender or Realtor® if they are aware of any city, professional or special programs in process. Some programs offer closing cost assistance.
Choose a neighborhood that fits your lifestyle. If you have children, the school district may be an important factor. Or, if you have pets possibly a community dog park would be nice.
Next is the skill of negotiation. Some sellers might take lower than asking price if they believe you will treasure the house as much as they did.
Don’t forget to budget for furniture. You’ll need to buy furniture, which is about 25 percent of the cost of the home.
Your home needs a warrantee just like your car. There are companies that specialize in home warranties. This is a cost that buyers should not neglect. Often this fee can be covered by the seller at closing. For more information, ask your Realtor®.
Lastly, decide how long you plan to stay. Unless you know you found your dream home, consider the cost of moving. If you don’t stay in the home at least five years, you may not have enough equity build up for fees to make another purchase such as closing cost, home inspections and another down payment.