Before you begin to dig into the experience of buying a piece of real estate, here are some things to do to get in “financial shape” for the transaction.
Set your timeframe and goals. What are your goals with the home? Will you be buying it to live in it? Fix it up and flip it for resale? Or, retire there? Review the risks and expectations of exactly what you expect this home to do for you. If you plan to fix it up to offer it to market again, be realistic with the timeframe, set goals for completion and be diligent to consider your local real estate market for when the home will be ready to sell. If you’re going to retire in the home, then you can invest in the property knowing you’ll be more easily able to endure the ups and downs of the real estate market, without need to sell again. And, of you’re looking to buy the home to stay for several years, be sure to consider the location, and overall demand for the property should you need to sell sooner than your initial timeframe.
Protect your pocketbook. Take a look at your financial plan. Be sure to be well aware of what your mortgage payment will be, local property tax, insurance and maintenance and updates that will be needed. Will buying this home reduce your living expenses? If so, determine by how much and consider any factors that may change and be sure you can still afford the home. Be sure you set realistic budgets for what the house will cost each month…be sure that beyond the closing table that it’s a viable number.
Partner with professionals. Be sure to work with a Realtor and title company like us to help guide you with a firm grasp on your goal for home buying. Your Realtor will provide market comps so you know selling prices of homes like the one you’re looking to buy. And, as your title company, we will ensure your title insurance, escrow and closing needs are handled with the utmost attention to detail.