You may be outgrowing your current home, looking to downsize due to an empty nest, or just in the market for a new home and now is the perfect time with the current state of low mortgage interest rates. Be sure to consider these 5 things when starting your new home search.
1. What is Your Price Range?
It is not a question of how much you want to spend, but how much you can afford. Assess all of your finance options beforehand to know exactly what mortgage rates and monthly payments would look like before you purchase. You may be able to take on that $2000 mortgage, but is that cutting it too close and not leaving enough breathing room per paycheck for unexpected costs? Set your budget before looking, know your down payment limit, and resist the temptation of a pricier home with which your realtor will try and sway you.
2. Is Building the Better Option?
Great mortgage rates can also result in bidding wars and minimal housing options for sale. When everyone is wanting to buy, it can be hard to get into a home at a fair price. Though an existing home allows you to move sooner, if you have the time, it may be a better option to consider building your own home.
The option of building your own home can cost just as much as purchasing an existing home and if home inventories are low, could even cost you less in the long run due to not having to outbid other buyers. Building your own home allows you the control to determine the style of home you want, the square footage you need, and even lets you decide the fine details down to paint colors and granite choices which you don’t get with an existing home purchase.
3. Will This House Meet Your Current and Future Needs?
Are you planning to have more kids while you live in this house? Are you considering opening your own business which requires a home office? How will the purchase of this home affect your commute? Make sure that the home you choose not only fits your current needs, but will be flexible enough to meet yours and your family’s future needs.
Not only do you need to consider the amount of money you are spending on the home, but you also want to think about its potential return on your investment. Equity in a new home can be a great asset and when done right, your home can be a great investment. Do a proper cost-benefit analysis before purchasing to ensure that you won’t be putting more money into the home than what it is worth and whether you plan on staying long enough in the home to grow profit from your investment.
5. Quality of Workmanship
Whether you are purchasing and already existing home or building with a local company, be sure that you are getting a quality-built home. Though a home may not cost a lot up front, if it was built too quickly while important structural factors were overlooked, you may be paying a lot more in the long run due to deterioration. Always find out who the builder was and the year it was built to compare other structures by the same company and read customer reviews.