Buying a new home can be an exciting endeavor. There however are things to consider before finally inking the deal.

After all buying a property can be life-changing. It puts a person into a new home, it alters personal finances significantly, and is a responsibility that has to be fulfilled until the mortgage has been fully paid off.

What to Consider when Buying a New Home
What should a prospective homeowner ponder on prior to buying a property? (Photo Credits)

Forbes.com for instance published an article on what homeowners ponder prior to purchasing a home. One of the points they raised in their write-up is for the buyer to be honest with himself and buy only a home he can absolutely afford.

“This can be different from the price that your mortgage company believes that you can afford. When my husband and I bought our first house, we were approved for a mortgage of about three times more than we ultimately ended up spending. Fresh out of law school and working for established firms, our finances looked good on paper. But we dialed back our expectations because we weren’t convinced that our income and expenses would remain at those levels. We were right: two years later, we started our own business just as the economy turned south. The less expensive house meant that we could still make our payments even with less income in pocket. So what’s the best ratio to use? Some lenders suggest that you can afford mortgage payments totaling about 1/3 of your gross income but others suggest closer to 28% for housing related costs including mortgage, insurance and taxes. There are a number of factors including your projected income, interest rates, type of mortgage and the market.”

Read the other points they mentioned here.

Before buying a home

Bankrate.com meanwhile shared what prospective home buyers should do in relation to their personal finances prior to buying a new home. One of the factors mentioned in the write-up is to build on one’s personal savings.

“Building up your savings, not just for a home, is very important. Your lender wants to know that you’re not living paycheck to paycheck. If you have three to five months’ worth of mortgage payments set aside, you’re a much better loan candidate. Some lenders and backers, like the FHA, will give you more latitude on other criteria if they see that you have a cash cushion. That money will also help pay for maintenance and repairs of the home. Most repairs are sporadic, but big-ticket fixes such as a new roof or water heater can come up suddenly and drain your budget. A good rule of thumb is to assume that you’ll spend 2.5 to 3 percent of your home’s value each year on upkeep and repairs. If you buy a $250,000 home, aim to save $520 to $625 per month.”

Check out the rest of the article here.

Checking the Home Structure

As for the home structure, design and construction website Houzz.com shared some advice to future homeowners. In their write-up they mentioned that the buyer should tour the home and imagine as if he is living there already. At the same time architectural and interior design considerations should likewise be thought of, along with environmental factors such as the weather, community, and proximity to neighbors.

“If you are in the market for a house, you’ll likely want to make sure you have a roof that won’t leak, a solid foundation, proper wiring and so on. But what about the things not covered by the inspection? Sometimes it’s these less obvious factors that end up making the biggest impact on your day-to-day experience of a house — things like the quality of light, flow from room to room and the amount of time it takes to shovel the driveway.”

Take a look at the rest of the write-up here.

Buying a new home is a bug decision. It is important that every prospective home buyer be aware of all the factors to consider prior to buying a property to avoid regretting decisions.

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