If you have decided that the time has come to purchase your first property, there is a lot that needs to be considered. Not only do you need to consider whether you are financially ready to do so, but you must make sure you are ready to put down roots in the area in question and you need to make sure that the property is right for you. With that being said, continue reading to find out about the key questions you should ask yourself before purchasing a property. This should help you to make the right decision for you.
Is your credit score good? There is only one place to begin, and this is with your credit rating. You can easily access your credit rating for free online today, and this is something you should definitely do. This will give you a good understanding as to what sort of offer you will get when you seek a mortgage. After all, if your rating is fair, you may still get offered a mortgage, however, you won’t get offered the best rates. Therefore, you may want to work on improving your credit rating before you make a mortgage application so that you will get offered a much better deal.
Are you ready to put down roots in the area? It is important to remember that when you purchase a property, you are not just buying the bricks and mortar, you are buying into an area. This is why you need to make sure that you are ready to put down roots here. Can you see yourself living in this area for years and years to come? Are you happy with your job here? Would you be happy to send your children to school here?
Can you afford the mortgage? – There are many different costs associated with buying a property, yet there is no denying that your home loan is going to be the biggest expense. You can use a refinance calculator to find out whether or not you will be able to afford a mortgage comfortably. If you can’t, or you are not happy with the rates you have been offered, you should work on your credit score and keep saving until you feel you are in a position whereby the mortgage is right for your circumstances.
Are you making decisions based on your emotions? Emotional decisions are often where we go wrong in life. When we make decisions based more on our emotions, we end up living to regret it. The worst thing you can do is buy a property based on emotions. Yes, you may see a property that you love, but if it does not cater to your requirements, it is no good for you. It is easy to get attached to a house and convince yourself that you can compromise. But once a few years have passed by, you will regret it.
Does the home and the location provide long-term resale value? You also need to look at the financial side of things in terms of future profit. The last thing you want to do is purchase in an area that is in decline. Instead, you need to do your research regarding house prices in the area. Do not only look at historical prices, but consider the future. Are there any developments in the pipeline that could impact the resale value? After all, while historical prices are beneficial, they do not guarantee that an upward curve is going to continue.
Have you got enough money to deal with any maintenance and repairs? Unlike renting, when you buy a home, you are going to be responsible for all of the maintenance and repairs. If the boiler breaks, you need to fix it. If the shower stops working, you need to pay for it to be sorted out. You can’t give these responsibilities to someone else, which is why it is so important to make sure you have an emergency fund so that you can pay for all of these issues as and when they arise.
Do you understand your wants vs. your needs? When it comes to purchasing a property, you need to have a thorough understanding of both your wants and your needs. What sorts of things are you willing to negotiate on? What sort of things are a necessity? Before you go to start house hunting, you should have a list of all of the things that are non-negotiable. This will ensure you can search for a property with greater clarity. However, make sure you actually understand your wants and needs. For a lot of people, the lines are blurred. They think they need certain things, when, in fact, they just want it.
As you can see, there are a number of important questions you need to ask yourself before purchasing a property. If you ask all of the questions that have been mentioned above, and you give honest answers to yourself, you should be able to come to the best decision for you. After all, there is no denying that purchasing a property is a massive investment. This is not something that you should rush into. You need to ensure the property is right for you and that you can afford it, which is why the questions mentioned above are so important.