LIFESTYLE & TRAVELBUDGETING

Beyond the Keys: Future-Proofing Your First Home

As a first-time homebuyer, you may find yourself in a position of constantly making decisions about what you want. Whether it’s finding a lending company or a real estate agent to work with, it can become overwhelming because, let’s face it, purchasing your first home is a big deal.

Once you get past the point of mortgage preapprovals, it’s important to not only have an idea of what your current needs are but also how your needs could change in the future. Let’s review a few things to consider that could help you prepare for decisions that will impact your current and future self.

1. Budget and affordability: Changes are an inevitable occurrence, especially when considering your budget and ability to afford a home loan. It’s vital to have discussions prior to mortgage shopping to know what you can afford. Utilizing mortgage calculators, if offered by your financial institution, can be a great way to be proactive in knowing what makes sense for your family financially. Potential changes in your income can play a role in the decisions you make about affordability as well. For instance, if you have a job where layoffs are a common occurrence, do your best to take potential employment lapses into consideration.

2. Location needs: Prioritizing the location of your home is important. Consider commute times for anyone living in the home who works. Be aware that increasing commute time can increase costs such as gas and vehicle maintenance. There may be additional costs associated with parking fees or tolls when commuting. Be mindful of any future family goals you may have. If you’re planning to expand your family, you may need to evaluate school districts, day care options and community safety.

3. Renovation flexibility: When searching for a house that fits your needs, you may see a range of homes from fixer-uppers to move-in perfection. Talk with your real estate agent, if you choose to work with one, about what you’re looking for in a home. Be sure to mention if you would like a home that doesn’t require any renovations or updates. If you are looking for a home you really want to make your own, pay attention to home layouts, and consider what the cost could be to complete any updates. It’s also important to be aware of any homeowners associations (HOAs) that could require you to get permission before making any changes to the home.

4. Continued costs and maintenance: Different home types can bring an array of maintenance costs that you may not have been responsible for previously. Be aware of the condition of the house prior to closing such as the age of the furnace and the life span of the roof. Homes in an HOA could have an additional cost and/or external maintenance requirements depending on the community you reside in. Do your best to complete research on HOA requirements and costs before entering into an agreement.

5. Is this your forever home? Knowing whether the home you buy today is the home you plan to reside in forever can be a stressful question to answer. However, it’s important to have a good idea of what your intentions are when you enter the home buying process. Some buy their first home with the intention of fixing it up as a rental property to fund their future forever home later. Others know immediately that the first home they purchase is the only home they will ever live in. Things can change while residing in a home but if you remember that purchasing your first home is great accomplishment during whatever stage in life you are in, you’re already succeeding.

Buying a home doesn’t have to be an intimidating process. Do your best to remain proactive to improve your chances of finding a home that fits you now and in the future. Understand what your intentions are during your search. Make lists of things that are your absolute dealbreakers and lists of things you can live without or can potentially change later. Once you close on a home, though, remember that it is yours to make whatever you dream of.

Sources:

https://www.zillow.com/learn/what-to-look-for-when-buying-a-house/?msockid=2619cfe0e13c6fee204bd997e08a6eeb