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6
Decisions to Make Before Your Home Search |
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Are you in the market for a new home but have no idea where to start? There are several decisions you should begin to make before you even start your home search. By asking yourself the right questions, you can quickly pinpoint what you want – and can afford – in your next home. 1. What’s your budget? See how your finances stand up to the 28/36 rule, which lenders use to see what you can afford to pay each month. A financial adviser or your real estate agent also can help you crunch the numbers. Going through the mortgage pre-approval process lets you know how much lenders will allow you to borrow – plus it helps you show sellers that you have the funds to back up your offer. 2. What do you need in your new home? How many bedrooms or bathrooms do you need? What about a large kitchen, a home office or a playroom for the kids? How many cars need covered parking? It’s critically important to ensure the home you select meets your family’s and lifestyle needs. 3. Do you want a condo or single-family home? Condos come with much less maintenance. You typically won’t be shoveling snow in the winter or replacing the roof, but you’ll likely pay monthly association fees to cover services and repairs in the community. Houses, on the other hand, come with more privacy and freedom to customize. They also come with full responsibility for maintenance. 4. How do you feel about belonging to an HOA? Depending on where you buy, you may have to pay homeowner association (HOA) fees in addition to your mortgage. There are benefits to HOAs, such as maintenance, community centers and maybe even a pool or gym. But you also could be faced with more restrictive rules about the look of the outside of your home, down to the color of your front door, types of window coverings and whether you can plant flowers in your yard. Be advised, not all communities have an HOA (no monthly dues and no property management company), but many communities still have Community Covenants and Restrictions (CC&Rs) that are recorded with the County/State which are attached to the property. If you decide to purchase a property with CC&Rs, you will inherit the declarations and restrictions.
5. What school district do you want to
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