If you have been thinking about buying a new home, now is the time to make that a reality. Over the last year, home values have seen above average appreciation making this the perfect time to invest. Mortgage rates are extremely low, which will allow you to purchase more home at a lower long term cost. Before you jump into looking at homes, you will want to spend a little time thinking about the kind of home you will purchase.
What you Want
A media room? A three-car garage? A large lot? Good highway access? If you really want it, write it down. This isn’t about what you can afford, this is about what you would like to have if you could get it. You want to make a list of all the things that would make a new house perfect for your life. Don’t add things unless they really would make you happy. A list like this can really help you narrow potential choices down as you compare what’s on this list to the features of homes that are available.
What You Need
While your first list focused on what you want, this list will be what you really need. These are the absolute musts in your new home. Don’t include the pool or anything else you can live without. On this list, include bedrooms, bathrooms and anything else you can’t live without. This one may be a little harder, because you have to take the list you just made and take out everything that isn’t essential to the life you want. You might be able to live without wood floors, but what about central heating and air? Or access to top notch schools and medical care.
Know What You Can Afford
You know how much you make. What you need to know is how much of that is available for a mortgage payment and insurance every month, as well as annual taxes and fees. To know how much you can afford in your housing budget, make a list of all of your monthly expenses and compare it to your income to know how much money you have to allocate toward your mortgage. Sometimes, it can be easier to work from the other direction and determine how much you have left after other expenses are accounted for in your budget. This part of the process can be difficult, because you have to be painfully honest with yourself or you risk problems down the road. Speaking with a mortgage lender may be helpful in this process today. If you need the recommendation of a great lender, let us know and we will be happy to make a recommendation.
When we begin looking at houses, you’ll see the benefit of having planned for this in advance. With your preparations and a little time, we will have you in the perfect new in no time! Contact us today for a consultation. We will be happy to answer any questions you may have.
The Janis Penick Team
RE/MAX Bastrop Area
Serving Bastrop, Cedar Creek and Smithville
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The Janis Penick Team is your ultimate real estate resource for Bastrop, Cedar Creek and Smithville, TX.