As you attend open houses, carefully assess whether a home ticks all your boxes. Here are some things to consider when buying a house as a first-time home buyer or a seasoned pro: For many prospective home buyers, a home’s purchase price is their biggest concern. If they overspend on a house, they run the risk of becoming house poor, spending most of their income on housing, including monthly mortgage payments. When you’re “house poor,” it limits your ability to spend on other essential needs or save money. Consider getting a mortgage preapproval from your mortgage lender before you begin house shopping. The preapproval will tell you how much home you can afford and what down payment you’ll need to make. When you know these figures ahead of time, you can avoid wasting time viewing homes that are more expensive than you can afford.1. Price
2. Location
Where you buy a home will have a tremendous impact on your day-to-day life. Location is another critical factor to consider while you search for the right home. When considering a potential home, it’s important to evaluate several components of location, including:
- Flood zone: Before buying a house in a flood zone, research the area’s assigned flood zone code and assess your comfort level if the home is in a flood-prone area. And while it will likely increase your monthly expenses, you may benefit from purchasing flood insurance.
- Safety: Research the neighborhood. You can start by looking at local crime data and joining neighborhood social media groups to gain more insight into the community.
- School district: Whether you have children in the home or not, research the local school district. Buying a house in a community with a competitive school district can be very helpful when you sell a home.
- Distance from the airport: Whether you travel repeatedly or rarely, learn how to get to your local airports from your new home. Consider the expense of ride-hailing apps and calculate how long a round trip to the airport may be.
- Public transportation: Consider your public transportation options. If you don’t drive, choosing a home close to a reliable method of public transportation, like a bus stop or subway station, may be essential.
3. House Size
Carefully consider the size and floor plan of every home you tour and whether they measure up to your needs. Some aspects of a home’s size to look at include:
- Square footage
- Overall layout
- Number of bedrooms
- Number of bathrooms
- Living room size
- Whether there’s a garage, basem*nt or attic
- Yard space
Determine which aspects are essential. Then try finding a home that meets your top requirements. A home is a major investment – do your research to establish whether it meets your basic needs.
4. Property Taxes
Another factor that impacts a home’s overall affordability is property taxes. Compare property tax amounts over several years to help you calculate the overall affordability of a home.
5. Homeowners Association (HOA)
Decide early on whether you want to live in a community tied to a homeowners association (HOA) or prefer to have greater control over what you can do with your home.
Some homes are part of a local HOA, an organization that manages a residential community. When you live in a community run by an HOA, you likely pay a fee to help maintain common areas and community amenities, and the HOA may limit what you can and can’t do with your home.
You pay HOA fees in addition to your monthly mortgage payment. You should know the amount and confirm that it fits comfortably into your budget to avoid making an offer on a home attached to an HOA with an unaffordable fee.
6. Amenities
Finally, consider any community amenities you’d like access to. For example, if a home you want to buy doesn’t have a pool, you may prioritize living in a neighborhood with a public pool. If you have children, a large playground may be a priority. If lawn care isn’t your thing, buying a home in a community with a homeowners association that provides lawn maintenance may make sense.
Ultimately, amenities are nice-to-haves, not must-haves. But they can be the proverbial cherry on top that makes living in a neighborhood even more enjoyable.
