Finding The “Perfect” Home

There are so many factors to take into consideration when buying a home, price, size, location, amenities, even the yard plays into your decision.  Because you’re spending a larger amount of money than you are usually accustomed too, it can influence your decision even further.

It’s important to keep in mind the things you CAN live with and the things you can live WITHOUT.  This is going to help you purchase a home more effectively and get a better price.   If you get caught up in the whirlwind of homes migrating to and from the market, you can easily get overwhelmed and make a poor decision.  That is why, after 10 years experience with home buyers ranging from first time to seasoned, I created this “home buying checklist” to assist you make the proper decision.

 

Buying a Home is an Emotional Decision

At our first consultation I try and tell every client this, I know price and payment are concerns of every buyer, no one wants to overpay or get overcharged.  But it’s important to realize that when you buy a home you have to live in it, it’s the place you come home to every day and you want to make sure it’s more a “home” than a “house.

That being said you also want to live IN your house, not FOR it.  This means you want to be emotionally invested in your home but you don’t want to be overextended on the payment.  I have found that most people will purchase a home that is slightly more expensive than they originally sought, simply because they have an emotional attachment to that property.  That being said….

It’s Better to Pay a Little More Rather than Wait

This may go against every fiber of your better judgement, but it’s true.  I’ve had many clients who were not able to get that “perfect” home because they were outbid by $5,000, and they refused to increase their offer.  Believe me, I understand the contempt you feel when faced with the thought of overpaying; no one wants to be the one who overpaid.

Believe it or not mortgage rates are rising, and even a small adjustment upward will increase what you pay for the house.  To show you, I have put together this example; based on a home buyer offering on a $200,000 home at a 30 year interest rate of 4.5% (payment is principle and interest only)

If the buyer purchased a $200,00 at 4.5% for 30 years their monthly payment would be $1,013.37 and the total they would pay for the home is $364,813.20.
If the same buyer decided to wait and buy a $200,000 home in 6 month (with rising rates) the following may be true:
Same buyer, $200,000, but now rates are 4.75% (a modest increase) their payment would be $1,043.29 and they would pay a total of $375,584.40 for the home.
In this likely scenario the buyer would pay $10,771.20 more for the same priced home

 

 Important Things to Consider When Buying Your Home

Now that we know this is an emotional AND logical decision, we can discuss the necessities of the home.  Here are a few important things to consider with every home you purchase:

  • Price (It must be within your affordability)
  • Number of bedrooms (are the children sharing rooms, or will each have individual rooms?)
  •  Number of bathrooms (to accommodate your family needs0
  • The kitchen (Do you host parties and gatherings, will a meeting place be in the kitchen?)
  • Dining Room (Do you need a dining room to accommodate your family and friends)
  • Location (School districts, proximity to work)
  • The Yards (Do you have pets)
  • The Parking (How many vehicles do you own)
  • The covenants (Neighborhood restrictions and requirements)
  • The age and efficiency of the home
  • Condition of the home

You should make a list of “must haves” and ” can do withouts”  to assess the most efficient home search possible.

Be Honest, Be Realistic

Unfortunately many people don’t know what to expect from a home search until they get pre-approved and start looking, so it’s important to approach the real estate search with an open mind.  Sometimes people expect all the amenities in a small $80,000 ranch, which is likely not the case with increasing rates and real estate prices.  So it’s crucial to be open and honest with your real estate agent and lender to assure the best possible transaction.

Communicate Openly and Often With your Lender and Real Estate Agent

If you ever have questions about payments or rates you can always contact your lender.  They should be available to answer any of your questions 7 days a week.  This is an important part of the process because it keeps everyone on the same page.

 

Hopefully this has helped you make a decision in your imminent home search,

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Justin Scott

Loan Officer

NMLS 878581

  1. C) 920-530-4484
  2. O) 920-490-8823
  3. F) 920-490-8967

Executive Mortgage

NMLS 271650

909 . E Walnut Street

Green Bay WI 54301