Deciding to buy a house can be one of the most important financial decisions of your life. However, too many people rush into a transaction without having all of the pertinent information, which can result in overspending. Having a mortgage payment that is too much can affect every aspect of your finances and can limit your financial opportunities for years to come. For this reason, you should always learn the following before closing the deal on a new home.
Can you be pre-qualified for a certain amount?
Many people overestimate the size of a mortgage they can comfortably afford. By getting pre-qualified for a mortgage, you will be aware of the maximum value of house you can afford based on your income and expenses. In addition, people who are pre-qualified for a mortgage may have an upper hand if a bidding war begins. Make sure you also budget in costs for the closing process, as well, as it can be costly.
What size house fits your family?
People in the U.S. are buying bigger and bigger houses even as family sizes are getting smaller. While many people think bigger is better, you should remember that it costs more to maintain and insure a larger house and utilities will be more expensive. In some cases, it may be preferable to buy a smaller home that is in better condition than to go off size alone.
What is the true value of the house?
Sellers often believe their house is worth more than the actual value and will start with a relatively high asking price. In some cases, you may love a house so much that you are willing to blindly agree to the asking price without examining the true value of the house. By buying a house that is worth less than you pay for it, you may lose out on the investment in the end. Additionally, you should always hire your own inspector to identify any problems in the house that may reduce the value and justify a lower asking price.
Call 201-498-9768 today for more information.
If you have all of the necessary information, buying a house can be a huge success for you and your family. The Law Office of John L. Schettino regularly helps clients through the home-buying process to ensure there are no unnecessary snags in the process. If you are considering any type of real estate transaction, please contact our New Jersey real estate attorney for help today.