In today's interconnected world, complete with the Internet and mobile phones, finding information about potential homes that you would like to own is actually at your fingertips. The difficulty is that, instead of there being not enough information, you can actually go into overload looking at all of the comparables, information on neighborhoods and schools, not to mention available mortgage rates that you may or may not qualify for. The biggest decision, however, is making that final choice to actually buy a home, a financial commitment that is absolutely enormous. To help you out, here are five easy questions that you should ask yourself to help you deal with all of the information, and also to help you make the right decision when purchasing a piece of real estate.
What Is the Quality of the Home?
More than likely, you will be able to get a better deal on homes that need a little bit of work. When talking with your mortgage broker, they will provide you with several options in regard to financing. If it is in great condition, then regular financing will probably not be a problem. However, if it does need some work, the way to buy is to have a sizable amount of cash to work with; or get a rehabilitation loan with a large down payment. It all depends upon your finances, how much money you have to work with, and the quality of the home itself when it comes to getting the financing that you need.
Is It Really the Home of Your Dreams?
Many people will see a home either online, or pay a visit to the actual residence, and absolutely fall in love with what they see. You need to make sure that you are not making an emotional decision, one that could actually harm your personal finances as a result of having to pay a sizable mortgage payment. It is important that you always consider how much you can afford prior to making any type of offer. If the offer is out of your range, and out of your budget, then you need to counter offer, making sure to never go after something that could hurt you financially.
Can You Afford It?
In relation to the prior statement, if it truly is the home that you want to spend your remaining years in, or if it is something that you have always dreamed of having, it must fit your budget, or it could become the nightmare that you never wanted. Go over your finances carefully, and try to make sure that it will not cause financial hardship for you and your family. The mortgage broker can work with you trying to find lower rates for financing, or perhaps by making a counter offer, with a larger down payment, you can get the monthly amount to an affordable rate that everyone will be comfortable with. In essence, you don't want what may be the most important investment of your life to actually become the worst mistake that you will ever make.
What Do the Comps Say?
One of your best friends, when it comes to making offers, is to look at recent or similar housing comps in order to determine a final price. The seller may want a certain amount for the property, and may not be comfortable with a lower amount, until they understand that houses that are similar to theirs are actually going for a lower price. Using all of the information in the comps, including size of the home, number of bedrooms, bathrooms, and available living space, you can make a good case for the amount that you are offering. In the end, this will help you secure a lower purchase price, and a more affordable mortgage payment that will allow you to stay within your budget and also get the home that you actually want.
Is There Competition for the Home?
Make sure you hire are dealing with at a realtor who will tell you if there is a lot of competition for the home at which you are looking. A good realtor will know the market and will know if the listing agent is being honest about the competition for the home. You can use this to your advantage, especially if you are dealing with a property that is not in the best location and that needs a little work. If the competition is not that fierce, you can make an offer that is much lower than the asking price, hedging your bet on the seller fearing that your offer may be the only one.