7 Questions to Ask Yourself Before You Decide to Buy a House
12/23/2010
If you’re like many first time home buyers, you’re eager and excited about making your first home purchase. But before you rush head first into the financial and emotional roller coaster of home ownership, make sure you’re ready for the tasks ahead by asking yourself the following questions.
1. Will I qualify for a mortgage? If you’ve got a bad credit score or no assets in the bank, you may find it difficult to qualify for a decent mortgage. Find out for yourself what your odds are, and what you can do to improve your odds, before you decide to purchase.
2. Can I afford a mortgage? If you aren’t sure whether or not you’ll be able to make the payments each month, do not purchase a home. Wait until you’ve saved up enough money for a higher down payment to reduce your monthly costs.
3. Where do I need to live? Figure out your future career goals and financial and social needs. Don’t let yourself be forced into an area where you don’t want to stay.
4. Are homes in the area increasing in value? Try to buy a home in an area that is improving. If the area where you need to live isn’t improving in value, you might want to wait to buy until the economic outlook looks better.
5. Are mortgage rates good? Check out the current mortgage rates in the local marketplace and determine whether it’s financially wise to take out a loan in the current economic environment. At present, interest rates are incredibly low.
6. How long will I stay in this home? This will significantly impact the decisions you make during the home purchase process, especially related to your mortgage. Plan for the future and determine how long you want to stay in the home.
7. Do I like this house? This is the most important question of them all. If you’ve found a house that works but you don’t like it, don’t buy it. Wait until a house comes on the market that you love.
Make sure you ask yourself these seven questions before you decide to purchase a home.
