Have you been searching high and low for that dream house? There is nothing as satisfying as finally finding that perfect new home for you and your family! But before you take out that loan and sign those papers, there are a few things you should ask yourself before buying a house! Why? Well, buying a home is different than any other purchase you have made or will make in your life. It’s a huge investment and perhaps even a long-term commitment. Are you ready to take that step?
Does this purchase fit well with my financial goals?
Financial goals. Nothing screams “adulthood” more than thinking about your financial life and your goals. For many Americans, student loans and credit card debt are their top priority when it comes to financial goals. So really, this is up to you and your family. What are some things you should discuss before buying a house?
- Do you currently have financial security in order to buy a house and pay any existing debt if you or your spouse were to lose their jobs?
- If I purchase this home now, will I still be able to save towards my children’s education?
- Does this purchase impact my retirement plan?
And don’t try to answer these questions all at once on the same day. Take your time and ask your spouse and family members what they think of this choice. If the majority thinks it’s a bad idea, you might have to reconsider your priorities before buying a house!
Can I really afford it?
Well, if we are already looking at houses, shouldn’t we know if we can afford it or not? Not necessarily. When searching for a dream home, many have a list of “must-haves” and they compare each and every house to that list.
But, sometimes, we must be more realistic and not so idealistic when it comes to finding that perfect home. Why? Many times, perfect homes come with really big numbers and our budget can only be stretched so far. Our first tip here would be to make a reasonable list of “must-haves” and always go in with an open mind when buying a house.
How can this help us know if we can afford a house or not? Because, if you’re not really sure about this house, it may not be a good idea to even start the buying process. Have in mind these three key factors before buying a house:
- Check you have enough savings for the down payment. (Which can be at least 20% of the purchase price.)
- Do you have a secure cash flow in order to really enjoy the house?
- Check your financial blueprint: your credit.
How much of a tax break would I be getting?
Did you know that when buying house, you get to deduct all at once points paid to get your mortgage, which could add up to a sizeable tax break? But, it’s not so simple and that’s why you should ask yourself this beforehand:
- Do you know if you itemize or take standard deductions?
- Do you know if you are exposed to AMT? (Alternative Minimum Tax)
- Do you know your marginal tax bracket?
If you are not sure about the answers to these questions, it may be a good idea to investigate a little bit more before signing anything! Remember, buying a house is not like buying a pair of shoes! There’s so much behind it but with the right realtor, you can do it!
Top 3 Questions You Should Ask Before Buying A House Review
Whether your feel pumped enough to sign those papers and buy that new house, or just depressed, knowing that you still have a long way to go, remember this: YOU CAN DO THIS! If you need professional help and you ar looking into Calabasas real estate, contact Yoav Astman today.