For new and old homebuyers alike, the housing market is currently an extremely volatile place. In some areas, houses are being sold faster than wildfire catches… Whereas other parts of the country have a housing market that is slower than ever before. Regardless of which type of housing market a person is currently looking for property in, identifying the most important factors to consider when purchasing a home is crucial to success.
How Difficult is it to Purchase a Home?
Regardless of whether a person is in a state where homes are sold quickly or slowly, the difficulty of purchasing a home stays relatively constant. Now, more than ever, being approved for a home purchase is moderately more difficult than it was in the past. The majority of lenders require a borrower to have a credit score above 620 for a traditional mortgage loan. However the best lenders typically require a score of at least 740.
Considering the fact that the average American credit score is only 714 based on the latest FICO data, it’s clear that making the jump to purchasing a home will be challenging for anybody in the country.
What Budget is Required to Purchase a Home?
The first way to demonstrate that you are ready to purchase a home is to ensure you have enough saved. While property located in coveted locations such as Lake Geneva will sell for more than property in other parts of the country, it’s reasonable to expect a home to cost around $500,000 in lesser expensive states and closer to $1,000,000 in more expensive states.
A traditional down payment for a home falls between 12-20% most often. Which means the average person should expect to budget tens of thousands of dollars. And potentially hundreds of thousands, for their down payment alone… Following this, a person should expect to pay a couple thousand dollars per month for their mortgage payments as well.
5 Factors to Keep in Mind When Purchasing a Home
With everything outlined above, it’s time to outline the most important factors to keep in mind when purchasing a home.
1. The neighborhood the home is in
A home’s neighborhood reflects a lot on a home itself. Whether it is the age demographic of the people in the neighborhood or the appearance of other home’s in the neighborhood itself, neighbors are an excellent indicator of what social activities may look like in the area.
2. The overall location of the home
Building off of the prior point, the actual location should play a role in how appealing the home is. For example, a home close to grocery stores, bars, shopping centers, and other areas will be far more attractive to someone who frequents those areas constantly, given that they won’t have to drive as far.
3. The current age of the home
The current age of a home plays a more important role than what is seen at first glance. Older homes are far more likely to have maintenance tasks come up as compared to newer homes. And for people who don’t have the ability or desire to handle these tasks it can be a problem!
4. The exterior and interior style of the home
Exterior design should be one of the biggest driving forces for whether a person decides to purchase or not. Specifically, look at both the interior and exterior of the home to determine if it matches what you are looking for in a property.
5. The amenities in a home
Finally, the amenities of a home should be taken into consideration before purchasing the property. Whether it is something such as having a pool in the backyard or simply the age of the appliances in a space such as the kitchen, consider everything when thinking about your purchase.
The Bottom Line
The perfect home will not look the same from person-to-person, but that doesn’t mean that people around the country can’t use the same tips to find the perfect home. Each of the above five factors should be considered by any prospective homebuyer so that they can feel more confident they are making the right choice with their purchase. By finding a house that a person loves, it is more likely they will stay in that home for years to come.