Homeownership is a significant, long-term commitment which requires planning, the right timing, and a strong financial standing. That said, there are many things first-time buyers need to consider before taking the plunge.
Before you decide to take on a mortgage, here are several key questions prospective buyers need to ask themselves:
Why do you want to buy a home?
Knowing why you want to purchase a home in the first place is a critical question to ask before you start looking at options. What is the home for? Is it just for yourself, or for your family? Are you planning on renting it out? Knowing the answers to these questions will help you figure out what type of loan structure you’ll require, what room count and house size will be ideal, and what will be the best fit for both your short-term and long-term family plans.
Have you considered hidden costs?
The down payment and mortgage are important figures, but these aren’t the only costs you need to consider. To know whether you’re financially ready for homeownership, you’ll need to take into consideration all the ongoing costs.
You have to take into account other costs such as home owner’s insurance, property taxes, realtor fees, utility and maintenance costs, closing fees, and others. And since you’re buying a home in Florida, you’ll also need to look into getting hazard insurance, which covers your home from potential hazards such as hurricanes or floods.
Are you ready to take on new responsibilities?
Buying a home means you’ll need to be ready to take on major financial and personal responsibilities that come with homeownership. Owning a house is not as simple as paying your landlord every month, or notifying that landlord in case a certain problem pops up with your home.
Owning a home means you’re in charge of every task required in order to maintain it – this includes knowing how to fix things, scheduling handyman repairs if necessary, knowing which appliances are best, cleaning your interiors, maintaining your yard, and many more. Owning a home requires a lot of effort and it can be very time-consuming, so you need to be ready for it.
What are your plans for the next five years or so?
You might be financially capable to buy a home at this point in your life, but you also need to look ahead and figure out how a home affects your current relationship or career path. Perhaps you or your partner have plans to go to grad school in the near future, or maybe there’s a chance your current employer transfers you to another location. If you’re thinking about starting a family, certain factors suddenly come into play that you might not have considered earlier, such as the quality of schools in the area, neighborhood safety, and access to public parks or recreational areas.
Purchasing a home might seem like a great investment right now, but it’s also one of the most expensive assets you’ll spend on. It’s a major decision, one that requires you to think ahead and consider what’s in store for you in the next several years.
If you need help with finding an ideal home in Aventura, Sunny Isles, or Miami Beach, FL, Sigal Realty Group is the right team for the job. Give us a call at 786-797-9088, or send an email to sigaldagan(at)gmail(dotted)com or ydagan(at)onesothebysrealty(dotted)com.