Finding the Right Home: Guide to Buying a New Home
What makes a house the perfect home?
Is it the price or is it the location?
Believe it or not, finding a perfect home does not always have to rely on your desire to have one or the amount you can afford. It relies on several factors that must be taken full consideration so that the house you are about to buy makes a perfect home.
Here are the things that you want to ask yourself when you are finding not just a house but a perfect home:
1. How much can I afford?
Knowing your price range does not only narrow your search with what you can afford, it also helps you in the long run when you are starting to pay for your mortgage. Make sure that you set this before you begin searching. Do not go beyond your budget.
To know how much you can afford, you have to consider your present financial standing.
First, you have to know your total income. Then, gather all your bills starting off with your fixed monthly bills or your utilities such as electric bill, cable subscription, telephone bill, credit card bill, car maintenance cost. Next, know your monthly expenses for food, education, leisure, etc. Add your fixed bill to your monthly expenses and subtract it to your total income.
Do you spend more than what you can earn? If “yes” then you are not ready to buy a new home. If “not”, better save first. Your savings will help you decide how much you can afford for your mortgage.
Know your credit score. This is important since it influences the interest rate of your mortgage.
Know your total debt. Making sure that you don’t encounter larger financial problem in the future requires you to manage your debt.
If you know your savings, your credit score, and your total debt, you will know what you can afford.
Use a mortgage calculator to get the estimate of what you can afford.
2. Where do I want to live?
Answering this question would require you to know exactly your priorities. In other words, the location of which you want to live relies on your priorities in life or your lifestyle.
Is it convenient for your daily commute? Is it near a private school? Is it near a shopping mall? Is it near restaurants, parks, clubhouse, swimming pool, and basketball court? Does it answer your requirement for a good neighborhood? Is it safe? Are the streets well lighted during the night?
Remember to set your priorities when you are answering these questions. That’s the only way you will know where you want to live.
3. What do you want and what do you need?
What you want is different from what you need. You may want a large garden but you do not need it. You may want a large floor area but you do not need it. The point is, take note of the features of the house you cannot live without like a good bedroom size, a perfect kitchen, particular lighting effects, flooring, carpet, tiles, wall colors. Again, it is important to know your priorities.
After you answer these questions, it is now time to find the house that will make a perfect home.