5 Things You Should Do When Buying a House

    a house

    If you are around the age of 40, married or living with your partner and have a medium income around $87,500 annually, chances are that you might be interested in buying a house. According to Zillow statistics, over 70% of house buyers share these characteristics. Statistics also show that 52% of homeowners view their home as a financial investment and 48% view it as a means of expressing their personality. Buying a house for your family is a need that will occur eventually, if you don’t want to spend your whole life in rentals. Considering this, you would want to be prepared for such a big decision. These are some of the things you should take into account when you decide on buying a new home.

    Don’t go over your budget


    When planning to buy a home the first thing that comes to mind is whether you can afford it. Making a budget plan is an essential first step in which you should consider several things. Your budget mustn’t be all the money you have been saving up for years. Spending all of your money on a house is a mistake easy to make, since it is common to consider that once you buy a house everything else is ready. Unfortunately, there is a lot more work and many expenses you might not have thought of. For example, furnishing the house can cost up to 25% of the house’s worth. Besides this, you must keep in mind your PITI payment costs, if you decide on a mortgage loan. Careful planning and estimating can save you a lot of money, and prevent you to be in the 29% of house buyers who overgo their budgets.       

    Homeowners insurance

    Insurance can be provided as a regular part of the mortgage monthly payment. But in case you choose a down payment of less than 20%, insurance is not included. This is why people who take lower down payments make use of private mortgage insurance. When deciding on private insurance companies, be insightful enough to choose the one that suits your needs best. You can find quality reviews such as Youi NZ which can help you track the changes in the market and find the best option for you.

    Stick to the golden ratio 20% down payment


    If you are not able to afford the full price of the house, down payment is the second best thing. With a down payment of 20% you are left with a fixed mortgage rate for the next few decades until the full value of the house is paid off. Even so, 20% of the whole price can still be a lot to spend in one go, which is why some people rather choose lower down payments. The 20% is recommended for several reasons. For one, insurance is included in your monthly mortgage payment. This amount is also smaller when the down payment is higher. You can use mortgage calculators to estimate the best down payment for the value of your house.  

    Think about the future

    You are not buying a house just for now, but for the next couple of years at least. This means that you should not only consider your current needs, but also the ones you might have in the near future. If you are a young couple buying a house, it is not excluded that you will eventually need a baby room in your house. As this child grows you would want to be near kindergartens and schools, in a peaceful and safe neighborhood. You would also love to have a guest room in the house, a garage, or maybe a study room. Think about these aspects to make the best of your dream home.

    Buy a house only when you are absolutely ready

    a house

    You might be already fed up with homeowners who chase after you every month to pay the rent, but this is not the only reason you should take on the adventure of buying a house right away. House shopping can be fairly exhausting, both mentally and financially. If you do not have a stable job and a high enough salary to keep your savings intact, then buying a house right away might not be the best decision. As much as it is wonderful to have your own place, it is also a big responsibility and a burden.

    All in all, buying a house is not a one man’s job, and definitely not a part-time one. Once you decide on a home, make sure it fulfills all of your current and most of your future needs. Illiquid property is just as hard to sell as it is to buy, so don’t think if you make a faulty purchase you can easily correct it. If a house is meant for you, then you should just wait for the right moment to make it your home.


    • Scarlet is a passionate writer and regular contributor at highstylife.com interested in fashion, lifestyle, and health. She loves traveling, you could say that she is a real travel addict, especially when she has a chance to visit some exotic destinations. She would tell you that inspiration can be found in the most unexpected places.

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