Home buying is a huge step and there are some key factors for new couples to keep in mind before buying as a couple.
When you are buying a home it should be a careful and well thought out decision process before you purchase. Say you and your partner are just jumping into the exciting home buying process – you will want to know important facts and make sure you are not going into this huge purchase blind.
First you want to pick the mortgage that is right for you and your partner. Lenders have attempted to adapt to the changing macro-environment and new government legislation. The high risk and stated income mortgages that once were available during the housing boom are no longer allowed. Now, when home buying, buyers must select a mortgage that is suitable to their financial circumstances. Applications that boost dual incomes have a much better chance of succeeding in the current market than a solo buyer.
Fixed rate mortgages offer the lowest risk simply because the rate of interest will remain unchanged throughout the duration of the loan. Since interest rates are at an incredible low right now, it is a good idea to get into a fixed rate mortgage so you are guaranteed to have this great rate for your entire mortgage lifespan. This will help with your future budgeting for the time span you are living in your home.
If you are looking into home buying as an investment as a couple, important issues such as location are much more crucial than if the property is to be owner occupied. It is important to consider every possible avenue to either maintain or increase your investment property’s value. If you are looking in a developing residential area where there are few properties on the market, your investment will secure a home that is in high demand and part of a limited supply.
Don’t forget your everyday practicalities of being a homeowner. If you plan to purchase a property and live in it for a significant amount of time, then it is important you consider your long term plans both individually and as a couple. Is the home suitable for starting a family? Are the nearby schools suitable for your children? According to the National Association of Realtors, in 2011 27% of home buyers claimed the quality of schooling as being critical in deciding whether to purchase a specific property.
All in all, make sure you pay specific attention to your finances and future plans to ensure your investment is a rewarding one when home buying. Remember to consult The Lawhead Team with any questions or concerns you may have, “Because two Lawheads are better than oneTM“!