House buying is an expensive endeavor that requires a lot of planning and preparation. Due to the expensive cost of the house, you don’t have the luxury of making the purchase twice.
For you to make the right purchase, real estate agent dc recommends that you consider a number of factors. Some of the factors that you should consider include:
Your financial situation
This is the first thing that you should consider. How much money do you have? As rule of thumb, ensure that your monthly budget can handle the purchase that you are looking to make.
Unless you are filthy rich and one of the people that make the purchase on cash, you will have to pay the house on mortgage over a number of years. Usually 15-30 years.
In addition to considering the mortgage payments, you also should factor in other expenses such as homeowners insurance, property taxes, routine maintenance, and property taxes.
Are you sure of the amount that you can afford to pay every month? You should consult your accountant about it. There are also plenty of online calculators that can help you in making the estimations.
For you to have a stress-free life, don’t commit to a financial plan that you won’t be able to comfortably take care of.
The neighborhood
The neighborhood that you choose to live depends on your personal preferences. Do you like living in a secluded area where you only hear the noises of birds? Do you like a neighborhood where you can wake up in the middle of the night and head to the coffee shop?
You should buy a house that meets your heart desires. Before you make the decision that you will buy the place, consider spending some of the time there. For example, take a drive in the area a number of times and determine whether you can connect with it.
Also consider eating at the local restaurant and even take a walk in the nearby park. You only should commit to making the purchase when you are fully convinced that the place is ideal for you and meets your ideals.
Available mortgages
When you are buying a house, there are only a few options for the type of loan that you can use. Two of the most common types of mortgages that you can go with are fixed rate and adjustable.
In fixed rate mortgages, the interest rate stays the same over the life of the loan. The payments are divided up into equal amounts that you can pay on a monthly basis.
The longer the loan term, the less you will pay at the end of every month. While this is the case, you will most likely pay more interest than you would pay if you had repaid the loan over a shorter period.
An adjustable rate mortgage has a fixed interest rate for the initial period that is followed by a period when the lender can adjust the interest rate. For example, you can have a loan with an introductory rate of five years.
After the five years, the interest rate can change annually. When you choose this mortgage, you need to pay attention to the amount that you have to pay at the end of every month. Also consider what would happen in the event the amount increased. Would you be able to pay up?
The age of the property
How old is the property that you are looking to buy? You can buy an old or new house. Each type of property has its pros and cons. Most of the old houses have elegant designs and your neighbors will have something to talk about when they visit your home.
While this is the case, you should note that older homes have more TLC than newer counterparts.
Are you looking for a modern design? You should go for a new house. The house might not be a conversation starter when you have visitors but it will definitely meet your ideals when you are looking for a house with a modern look.
Regardless of the house that you want, you should consult a reputable dc real estate agent who will help you in finding the house of your dreams.