Buying a home is not a decision to be taken lightly. A home is perhaps the biggest investment one can expect to make in life. Therefore, one should be prepared with the most up-to-date knowledge before buying a home.
If you are considering purchasing a home, there are five questions you should ask yourself to ensure that you are ready for this massive undertaking. A qualified mortgage professional can help you navigate these questions and work with you side by side determine what course of action makes the most sense for you.
What is a Reasonable Budget When Considering Buying a Home?
While the price of your dream home may fall below what you can afford, you should always keep in mind that houses come with unanticipated expenses down the road including general maintenance and property taxes. Researching taxes and other costs for your home can help you to determine your budget.
How Should I Factor in Depreciation?
Maintaining a depreciation schedule is likely a smart decision to make when purchasing a property. A depreciation schedule essentially helps you keep track of all available tax deductions that you can claim for your property each year due to a predetermined rate of depreciation.
Depending on the age of your home, a depreciation schedule may or may not be worth it to you. In these cases, it is best to consult with a mortgage professional for clarification.
Is it Better to Buy Old or New Property?
Age of the home is an important consideration, and there is no cookie-cutter answer for your individual needs. An older home will generally be less expensive, while a newer home will generally be more expensive. However, these upfront costs in a new home may prove to be worth the potential for less repairs down the road. It’s likely that with a new home, you’ll have a few years at first where you won’t have to worry about any major repairs.
Is There a Distinction Between a Renovation and a Repair?
The terms sound similar, but there are differences between a renovation and a repair. For the purposes of this post, suffice it to say that a renovation involves removing an old feature of a home and installing a new one in its place. Compare this to a repair, which involves modifying an already in-place feature to improve its performance.
What Type of Home Ownership is Best?
Deciding whose name appears as the owner of the home may seem like an unimportant detail. However, if there is ever an issue that comes up, you want to be sure that the owner of the property is clearly defined so that you don’t end up out on the street.
For some who read this post, the answers may be crystal clear as to how they should proceed on their home buying journey. However, for others, this post may have raised more questions than it did answers. For those individuals, know that you are not alone. A competent mortgage professional, like the ones found at Rex Homes will be more than happy to assist you as you navigate the tricky world of home buying.