The Science of Buying
The home buying experience is a varied one: no too buyers have the same needs, and everyone ends up with a different story. The multitude of factors involved in the buying process is responsible for this variation. Each buyer deals with many different factors, but some are more common than others. We've gathered some of the more pressing ones here:
The most generic factor is income, but it can't be left out. It's safe to assume that everyone who succeeds in buying a home passes this, but some still get hurt by not being prepared:
Income
If your paychecks aren't steady or your job security is uncertain, it might make sense to hold off on buying a home. Add up all your income that you earn after taxes. Include your current pay stub, your spouse’s, retirement check, alimony and any other income you receive that can be used towards your mortgage. Then subtract your monthly expenses — rent, car/health insurance, loans, food and entertainment.
What you have left is what you can afford for your monthly house payments. It is also wise to subtract an amount you want to put aside for home repairs and emergencies.
With new mortgage rules coming into effect this year, it's gotten harder to buy. We recommend checking with a
mortgage advisor before getting serious, or at the very least, getting pre-approved.
Following on, even after the mortgage is approved, buyers must contend with after-costs, such as missed home errors, or furniture incompatibility. The costs incurred to adapt to the new home are from small.:
Don’t Underestimate The Impact Of Renovation And Other Costs
Unfortunately, it is rarely the case where renovation costs end up lower than you expected. Any number of things can go wrong – sometimes homeowners get carried away, unexpected issues (like burst pipes) and delays come up or contractors don’t fulfill their promises. Whatever the cause, the result is the same – higher renovation costs. Think about your renovation budget before planning for your home loan. This way, an unplanned issue doesn’t leave you cash strapped. The issues might not even be renovation related. Perhaps your car needs to be replaced or there is a major medical expense. Therefore, you need to ensure you have a healthy cash buffer for the unexpected. h/t singsaver.com.sg
First-timers are especially prone to this; even if they see it coming, it gets underestimated.
Are you ready to buy a home?
Lastly, is to ask yourself whether you're ready to buy a home in the first place. Despite all signs pointing to it, you may, in fact, be unready to take the plunge:
Ask yourself: ‘Is it really time for me to buy a home?’
Don’t buy a home just because everybody’s doing it (they’re not) or because your Uncle Joe told you that it’s stupid to “throw money away” on rent (he’s wrong, too).
Don’t buy a home because it’s a buyer’s market or just because of low mortgage rates. Buy a home because you want to be a homeowner. Buy a home because you’re settling down and need a place for live for at least five years. And only buy a home if you’re financially ready. read more at singsaver.com.sg
There isn't anything wrong with not being ready: everyone buys at different times. While there's no denying that this is an excellent time to buy (
based on market trends), it's ill-advised to use the market as your only guideline.
If you're seriously considering buying a home, keep these factors in mind. We recommend reaching out to a specialist buyer's agent and hearing what they have to say about your outlook: it's free and only takes a few minutes.