8 Great Thoughts When Buying a House

1. Buy for Growth.

Where do you see yourself in five years? If you have kids how old will they be and what will their life look like? Will the home you are buying still be fit your needs? With the average homeowner living in their house ten years looking five years into the future is pretty conservative. A smart buyer will plan for their future and buy for growth.

2. Don’t Speculate with Your Life.

It’s easy to get caught up in HG TV and try to make some quick cash by flipping that foreclosure on that street that might become a “good one” in two or three years. More and more buyers are trying to become flippers with their own personal home. Be honest with yourself about your ability, time, and the risks involved in betting on a neighborhood to turn or the market to keep going up.

3. Keep your Priorities

A pergola might be a great feature, but do you need one? Often buyers make the mistake of buying a house with buzzword features that don’t really apply to their lives. A fenced-in yard can be great, but if you don’t have kids or pets ask yourself why you need it. A great way to break it down is a list of like-to-haves and must-haves then pick out the needs from the wants on the must-haves list.

4. Start with a Firm Budget

Draw a line in the sand and promise yourself you won’t cross it based on your monthly budget. It’s easy to work to find that elusive perfect house. The more features you want the higher price point. Do you really need what you’re paying for or can you cut something out?

5. Put 20% down

Putting 20% down used to be a standard. As times have changed so have down payment limits with many loans only requiring 0-3% down. If you can, push to put 20% down and avoid PMI all together. If worst comes to worst and you had to turn around and sell, the 20% down should be more than enough to keep you from going underwater. You should even walk away with some cash in hand for what’s next!

6. Keep a Six Month Budget in Reserve

Not only is this a good family business practice, but having some cash reserves for the inevitable home maintenance items will keep you in the clear. Also, if you did lose your income source these reserves could keep you up-to-date on your mortgage while looking for a new job or selling your house.

7. Get Pre-Approved and Stick with a Boring Mortgage

Balloons sound fun, but balloon payments are anything but. The best thing about a fixed rate mortgage is they are reliable and boring, you know what it’s going to be. While an ARM may drop, it’s more likely that it will go up given current mortgage rates. We know many great local lenders that can help get you pre-approved, just give us a call!

8. Be Willing to Walk Away

As an agent this is difficult. As a buyer it’s even worse. In North Carolina we have due diligence for a reason, it’s your opportunity to inspect a home and see if there are any reasons that you shouldn’t buy it. As agents we walk through this process with buyers every day.

While these are thoughts to keep in mind and not rules or even guidelines the most important part of buying a home is to have a great agent that will help advise you along the way.

If you are about ready to search for and find your dream home, give Pro Realty Group a call. We’d love to meet you! 336-265-7253