Featured News 2013 Are you Ready to Purchase a Home?

Are you Ready to Purchase a Home?

You may be looking for a new home, but are you ready to take the plunge and invest in a property? There are some very important questions that you need to ask yourself before you decide to settle down with a new piece of property. One of the first things you will need to assess when deciding whether or not to purchase a home is if you can stay put for three to five years.

There is no point in purchasing a home if you do not believe that you will be able to occupy it for a significant amount of time. If you are planning on moving for a job transfer, a family situation, or schooling within the next year or so, then there is no point in purchasing a home. This is because buying house takes a lot of effort and you will need to pay expensive transaction costs like property inspections and loan set-up fees. If you are planning on moving it is easier to bypass these expenses and rent.

As well, you need to consider whether home-improvement sounds like an exciting after work activity. There are many responsibilities that you will need to take on if you purchase a home, such as making regular repairs and inspections. If you don't want to spend the time reconstructing, painting, and repairing things within your home, then you may not want to commit to purchasing a home. In apartment complexes, a landlord can be held responsible for all of these repairs, so you may want to rent rather than take on this responsibility and time commitment.

Also, you will want to ask yourself whether or not your finances are organized. If they are not, then it probably isn't the best idea to purchase a home. For example, if you never balance a checkbook, don't often pay the credit card bill, or do not organize your taxes, then you may not be in the position to take on the financial responsibility of a home. You need to apply for a mortgage and have clean credit. If you have a poor credit report, then you may need to wait until you can carefully balance your finances to take on this job.

As well, you want to make sure that you know your housing market. If you don't understand the average prices or don't know about the homes available in your area or the area that you desire to move to, then you need to talk to an attorney today. You can also hire a real estate agent to help you as you work through your home purchasing options.

You also want to make sure that you have the cash to pay the "closing costs" and the down payment of your home. Typically closing costs include not only the transaction costs but the homeowners' insurance, mortgage insurance, and your share of the property taxes for the year. Consider your budge for ongoing costs. A house is not a one-time purchase, but many recurring expenses from mortgage payments to repairs to utilities expenses.

Make sure that you can keep reasonable expectations for a home. You probably won't be able to purchase your dream home on your first purchase, but in the future you may be able to save up and upgrade or modify your home to be what you always dreamed of. If you want more information about real estate or if you run into legal complications and need assistance then talk to a local real estate lawyer for more information!

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