It may come as no surprise that there’s a lot to consider when you buy your first house – finances, where you want to live in the neighborhood, mortgage loans. But your house is where you’re going to spend a lot of your time, so you want it to be as comfortable as possible. Which is why there’s a lot more to buying a house than the loan payment and where it’s located. You have to take your budget, credit score, and the layout of the house into consideration.
The Price of the House
Sit down and check out your finances and create a budget plan. If you realize you only have the leeway to spend less than you initially intended, then you should stick to that so you don’t end up in debt. How much you spend on a house can help or hinder your finances in the future. If you spend more than you can currently afford and know you won’t be able to keep up with payments, then you need to start on a smaller price scale.
Know Your Credit Score
Your credit score can make or break you. It might be the determining factor when applying for a mortgage loan. The earlier on that you know your credit score, the longer you’ll have to fix it if it needs to be raised. If you notice that your credit score is poor right now, there are some things you can do to change it. Start by making payments on time, paying off any accumulated debt, and reducing your credit card use to start.
Get Preapproval for a Loan
Speak to your loaner about mortgage loans. This is how you’re going to be able to purchase your house in the first place. You’ll need to make sure you get pre-approved for a loan before you go through the hassle of finding a house. They’ll take a look at your income, credit score, and employment. Once you get approved, you can start looking without having to stress!
If you don’t plan on doing any major renovations when you move in, then you should try and find a house that suits your desires so you don’t need to gut it out. Some of the things to consider about the layout are listed below.
The Number of Rooms
If you’re planning on having children in the future, then you need to plan for this! Depending on how many kids you want to have, it’s a good idea to have at least one extra bedroom besides the master bedroom. You could use this as a guest bedroom before you have children.
The Age of the House
Do you want an old, rickety house that’s falling apart and in need of a few renovations? Or a newer house that’s worth triple the price of an old one? Older homes tend to be more affordable and even have a unique character to them that newer houses don’t have. It’ll take some work, but renovating an old house can be a fun and exciting new project. Ultimately, the decision is up to you and your budget.
A lot of time is spent in the kitchen – how do you want yours to look? Check out the appliances and how well they work and make sure you love the layout.
Know the Expenses
There’s more to buying a house than the mortgage loan. There are other fees you have to make sure you budget for, like property taxes, renovation fees, and insurance costs.
There will inevitably be some things that you will need to be fixed or that you will want to change when you buy a house. Make sure you have enough saved for any potential maintenance that needs to be done – even if that’s just painting, redoing the doors, or getting a new dishwasher. This can add up quickly, so having a savings account only for maintenance of your new house will ensure that you have the budget to fix things up as you please.
Once you know what you should consider when buying a house, you’ll be able to search the market without any problems. With careful planning, searching for a house can be a very fun and exciting time in your life.