4 Questions

What do you really need to know before you make one of the biggest purchases of your life?

Home ownership remains part of the American dream. Now that prices are still low, you may be rightfully thinking that it is time to purchase a home. Home values are starting to rise. Truthfully, right now is a great time to buy a home before prices and interest rates start to climb.

Before you head out looking though, we have put together some questions to ask yourself. These questions can help guide and direct you towards the perfect home for your family.

4 Questions You Should Ask Yourself Before Buying a Home

1.  What Can You Actually Afford?

It is easy to dream of mansions, but it is even better to know you can afford one. This is a great opportunity to take stock of all your financial information including your income, assets, debts, etc. Then you can see how much money you have to work with on a monthly basis. 

With the interest rates continuing to stay low, it might be helpful to know that the lower the interest rate, the more home you get. Would you like to know how much a 1% interest rate actually affects your money? You can find this out by visiting our article, Low Mortgage Interest Rate Stats You Want to Know.

2. Are There Any Unanticipated Charges?

Unanticipated fees and charges can be very frustrating especially if you have never purchased a house before. Here is a list of fees associated with purchasing a home to keep in the back of your mind:

  • Home Owner’s Insurance
  • Property Taxes
  • Closing Costs
  • Upcoming Anticipated Maintenance of the Home

These unanticipated fees can turn your just affordable mortgage payment into an unaffordable one if you are not prepared.

3. How Much Should You Put Down?

One of the biggest reasons why financial experts everywhere recommend putting a 20% down payment is because of PMI.

PMI stands for private mortgage insurance and is added onto mortgage payments when the buyer does not put 20% down. We are only talking about an extra $50 a month for every $100,000 you borrow. However, you can save that extra payment by putting 20% down on your home.

If 20% down is just not an option, you may consider a Federal Housing Administration Loan or FHA loan. FHA loans only require a 3.5% down payment, are really easy to apply for, and you don’t necessarily have to have great credit.

For more information on FHA Loans and how to qualify for them, please check out our article, FHA Loans and Qualifications for First-Time Home Buyers.

4. Where Do You Want to Settle Down?

Where is the right place for you and your family or potential family to settle down? Do you want to live in a small town, a big city or a city like Northville, Michigan which has both? Do you want to have community events happening every weekend, like Novi, Michigan? How important are good schools and low crime?

All of these questions can help you decide where to start looking for a house.

Summary

Now that you know what you can truly afford, what the unanticipated costs might be and where you want to start looking, you are almost there. With the help of an experienced real estate agent, it won’t be long until you are enjoying the perfect home for you and your family.

Do You Have Any Questions?

If you have any questions please contact my office. We would be honored to show you the available homes for sale in Northville and Novi, Michigan that are perfect for raising a family. Please call our office to schedule an appointment today.

248-348-7200