Are you thinking of buying a home? The Massachusetts home market is moving better this spring than it has in years, with favorable prices across most of the state. This has prompted some prospective homebuyers to make reckless decisions in an effort to secure their dream home. But care and caution can pay dividends down the road, and recklessness can have serious repercussions. This is especially true for an investment as significant as a home. So think about these tips as you move toward homeownership.
Don’t Bite Off More Than You Can Chew
Buying a home is a significant investment– likely the largest single purchase of a person’s life. You should make sure you’re getting what you want out of the purchase, as much as you can. But you should also be sure that you can afford the price, especially if you’re trying to purchase a home this year. Buyers are making above-asking offers due to the small number of homes up for grabs. While your dream home will be very tempting, keep in mind the sacrifices it will take to keep a home that stretches your budget thin, and everything that comes with it.
Include Day-to-Day Maintenance in Your Budgeting
Purchasing a home is a happy day, and it’s just the beginning. Home ownership comes with its own responsibilities and expenses. You’ll need to budget for all of the utilities, and establish a running fund for regular repairs and maintenance. Things wear out and break, after all. Will you be remodeling any part of the house? Will you want to in, say, ten years? And don’t forget the yards!
Be sure also to include the cost of your homeowner’s insurance policy. Whether or not this is required by your mortgage lender, homeowner’s insurance is always a good investment. A good policy will help protect you and your family from the immense loss that comes with losing a home should the worst happen.
Choose the Right Lender
There are many lenders that will gladly partner with you on this journey. Some will have better terms than others, be better to work with than others, and will have better reputations than others. You can do yourself many favors for years (or decades) down the line by selecting a mortgage lender carefully. Do your research. What kinds of terms are most important to you? What do people have to say about working with each company? Were they professional? Accommodating when the unexpected happened?
Don’t embark into a 30-year partnership with a company without doing your research. You’ll thank yourself years later for looking things up.