Deciding to buy a new home involves so many considerations and priorities, not to mention emotions. Where should you begin? The notion of looking for a new home came from some situation or thought that came up, start there. What are your reasons for looking for a new home now? Is this a good time for you to look at the considerations in your life? The chances that you are going to do serious long-term damage by making a purchase of a home that is overpriced or that you have an interest rate that is too high is why you use professionals in your process. It is important to find a realtor you can trust and a financial institution with rates and people to help you that work for you. Some things to consider:
- Why are you looking to move?
- What does your next home have to have (Bedrooms, bathrooms, garage stalls, square footage, levels, finishes, land, pool, lake…)?
- How much do you need to get for the house you live in?
- How much are you willing to spend monthly on your next home?
- Interest rates are temporary, and you can refinance later if rates come down, but waiting because of higher interest rates may result in property values going up more than you would have paid in additional interest.
- What will taxes do to your monthly payment in a new home?
- Are you looking for a turnkey home or are you willing to do some work on the new home?
- How is the inventory in this market and will you find the type of home you are looking for?
- What is the timing of looking for a new home and selling your current home? If you find a new home first, how will you finance the home until you are able to sell yours? Home sale contingency?
These questions require some preplanning on your part before you start your search. If you look for a new home with some level of intent to move, you will find homes of interest and it will set a cycle of scrambling and panic until the work is all done. A couple of conversations before you begin your search with lenders and a realtor will save you time energy and likely money on your next move.
Article by: Joseph Moylan, Realtor