Questions to Ask Before Buying a Home
www.RickStrohm.com
Rick & Rick Strohm, Jr.
August 24, 2011
Buying a home is a huge investment - with its advantages and disadvantages (more positive than negative!). Before you step in to a home/property purchase there are a few questions that you need to ask yourself:
1) Do I have enough money for the down payment? In today's real estate market a down payment can range from 3.5% (FHA Loan) to 10-20% on conventional loans. So for a $200,000 home you can expect to pay anywhere from $7,000 to $40,000. Do not be surprised, do your homework. Email me and talk with a real estate expert and mortgage broker about how much "cash" you will need to close.
2) Can you handle being a homeowner? You might be renting a home/apartment right now, that means that you have the luxury of calling your landlord at any time when something breaks. Becoming a homeowner that responsibility rests on your shoulders. You are the one that will have to fix all issues/problems with your home. You need to ask yourself if you are ready for that burden? Talk with a real estate expert about your concerns.
3) How long do you plan on living in the home? Most real estate experts state that if you purchase a home, be sure you plan to live in that home for the next 5-7 years. With this real estate market "flipping" a home is not a quick as it once was. You need to make sure you buying decision takes into account your expanding needs (maybe you will start a family, is your home big enough??).
4) Are your finances stable? If you know that layoffs are coming in your line of employment or business, I would strongly sugguest you not buy a home until you know that your finances will be stable/secure. One way to avoid this is to have enough money in the bank to cover 4-6 months of living expenses. That way, even if you do lose your job (with no warning at all), you will at least have a reasonable window of time to find new employment.
5) What are your real reasons for buying? Make sure that nobody is pressuring you into buying a home, you need to make sure you want to purchase. There are some great advantages for purchasing your own home/property:
- You build equity, instead of giving your money away to a landlord.
- You have a place you can call your own home!
- You get tax advantages for owning a home.
- You will have a stable place for you and your family.
For more information go and listen to my Podcast at -
http://rickford911.podbean.com/. Or email me at
rickstrohmjr@gmail.com.