As today makes seven years since I’ve lived in my faith home, I thought it fitting to share with you some factors to consider when purchasing a home. This is also based on the conversations I am having with clients and other financial advisors.
It’s been on my heart so much that I even recorded a video a few weeks ago on the topic – view here: What to Consider When Purchasing a Home
There are many factors that one should look at when purchasing a home and here are some of them:
Affordability
Can you comfortably afford this home based on your income? When purchasing a home, there are downpayment amounts, closing costs, monthly mortgage amounts and maintaining the home. It’s important to factor these costs as you are looking at homes.
Location, Location and Location.
Is this home in a location you are comfortable? Does your neighborhood provide you with the resources that are important to you, or are easily accessible to get to?
School District
As I’m a parent and schools are very important to me, what are the school districts like? Or, a question I asked myself: am I ok in a certain neighborhood, but then willing to pay for private tuition? It’s important to understand the values that are important to you.
Should I act now, or wait?
There are times that it may make sense to wait to purchase for various reasons. Sometimes, it’s allowing us time to build up savings. Interest rate has gone up a lot in the last year, and home prices are still very high – when this happens, a monthly mortgage becomes much more expensive as it’s costing you more for both the home and the loan.
Commuting time to work
How far away are you from your place of work? Are you close to trains and buses? Will you drive? Are you ok with the amount of time that you will spend commuting to and from work?
As you can see, there are many factors to consider when purchasing a home.
Do you need personalized guidance on how much home you can afford? Let’s have a conversation.
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