When buying a home, you want to make sure you do it right and get a mortgage that you won’t regret. Don’t just take our word for it. Dave Domzalski, a popular financial expert from Forbes and RuntheMoney.com, shares the top 6 things you should do before you buy a new home:
Before you even think about saving a dime, you need to know what you can afford. I would talk to a local lender and real estate agent and see what you need to come up with to get the home in your desired location. Doing your due diligence up front really pays off.
Ask questions and don’t be afraid to look stupid. Don’t act like you know everything because you don’t. Plus, don’t forget you’re the one making the payments.
Accept advice and learn from it, you don’t owe anyone anything when it comes to these types of decisions. You need to do what’s best for you and ensure your home isn’t a burden.
Find the monthly payment that you’re comfortable paying and that’s reasonable given your situation. Accept nothing over it.
After you’ve figured out how much you can afford, talk to your lender about the amount you’re willing to pay each month instead of the amount you qualify for. The biggest mistake my wife and I made when we purchased our first house was buying the most house we could afford. We didn’t factor in any breathing room and we bought it thinking we would both be working. We were “house poor” and forced to relocate when we decided my wife would stay at home with our children. We could no longer afford our dream home in our dream location.
It just comes down to being prepared and having the right people to guide you. It’s your money and you have every right to determine how it gets spent. Never feel bad about getting less home than the numbers say you can afford.
Even when the market is hot, it’s important to take the time to find the right home for you and your situation. Become a Churchill Certified Homebuyer so when you’re ready to make an offer, you can act fast, minimize surprises during the process, and get your funds quicker.
For more information about figuring out how much you can afford and getting a loan you love, click here.