If you ask a random person what their definition of being comfortable is, owning a house would most likely be mentioned. Shelter is one of the basic necessities of life, and it feels even better when you know it’s yours.
After years of paying rent, a primal urge enters all of us, the urge to be our own landlord. Some dismiss it because of their lifestyle, others embrace it. If you’ve been thinking of buying a house, here are three things you should know.
Pick The Right Environment
House hunters often get so immersed in the buildings, that they forget to consider the environment around them. We aren’t talking about an unkept area, even though that should generally be avoided. The question on your mind should be; “can my lifestyle fit in here?”
If you’re a single parent who works from home, the hustle and bustle of the city might not work for you. The suburbs with their quiet neighborhoods, and fewer speed-hungry drivers will suit you better. You can be sure your kids have considerably fewer ways to get themselves hurt, and you can work without distractions.
On the other hand, people with an active lifestyle would get bored quickly in the suburbs- but in the city, they’ll most likely feel right at home. Take a step back and consider your lifestyle, work, and people that might be living with you. With this in mind, pick the right environment and start your house search.
Choose a Mortgage Carefully
If you want to buy a home, you’d generally consider two options, financing it or paying outrightly; unless you have a rich uncle about to pass off his inheritance. Those that can pay for the home at once might not need this section, they do need to tell us their secret though.
Financing or mortgaging a home is a serious decision, after all, you’d be paying it off for years to come. Don’t be in a hurry to sign the first offer. You need to understand that banks and loaners are in the business for profit. It’s your job to look for the best deal.
Depending on the type of mortgage you will be using, certain conditions must be met. First off, have it in mind you’d be paying some sort of downpayment. The minimum percentage will vary as the mortgage type changes. You should always try to pay as much as you can upfront, this will reduce your future payments.,
Evaluate Your Credit and Finance
The average person would take 30 years to pay off their house mortgage; we can all agree that it’s a lot of time. With a payment plan that long you need to actively plan for the future, we’re talking about backup plans.
Even a well-paying job is not enough security because people lose jobs for reasons out of their control. If the organization you’re working for shuts down, do you have a backup plan? Having a good credit score and maintaining it will be your lifesaver.