Important Questions to Ask Yourself Before Buying a House
Whatever life stage you’re at, just entering the property market to buy your first home, a second home buyer ready to upsize to a bigger place or empty nesters looking at downsizing, it pays to prepare yourself for the rollercoaster ride to buying the right property.
There are a few key questions you should ask yourself before you start spending your weekends doing the rounds of open house inspections and practise auctions. Knowing the answers will bring you clarity of thought and help keep you grounded and sane during the whole process.
Can I afford to buy this property?
You may think this is such an obvious question but surprisingly one that many people fail to think about seriously. You may be excited to discover the amount a lender is willing to lend you, but will you be able to afford the mortgage repayments while maintaining the same lifestyle you’ve been used to?
Not just that, will you be able to keep up with the increase in repayments if interest rates go up? Getting your finances in order, making a budget to account for all your monthly expenses and fully understanding your income and expenses is not just a smart, money-savvy habit to cultivate but it will give you a good idea of whether you can afford to buy the property you’ve set your heart on.
Am I really happy with this house and its location?
The whole process of buying a new place can be time-consuming and emotionally draining. You may get attached to a place you like but miss out at auction or the other end of the spectrum you may feel under pressure to buy quickly. The fear of missing out may push you towards making a hasty decision which may leave you with a property you’re not happy with. Buying a house is for the long-term, and you should make sure you’re completely satisfied with your decision.
What do I want from this home?
Are you looking at buying a place to live in or to rent it out as an investment? Does it have room to grow? Knowing why you want to buy the property is important. If you’re looking to buy a house for yourself and your family, you may not be willing to compromise on the features and location. Whereas if you’re looking to buy a property as an investment, then the best price is everything because that will determine your return on investment.
What is the state of my credit score?
A mortgage is easily one of the biggest financial obligations you’re likely to make, and a good credit score could help you negotiate a lower rate. It’s not just important to have your savings in order, but making sure you have credit card debt under control, pay your bills on time and avoid taking more debt than you have to. Taking these measures will help maintain and improve your credit rating and should be your priority before you even get to the borrowing stage.
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.
But don’t worry, we can help with that.
If you’re thinking of buying a home, you can contact us for information about the best options for you when it comes to your mortgage.