What should I know about buying a home?
Has today’s fast-moving real estate market piqued your interest in purchasing a home? Interest rates should not be the driving factor in your decision to purchase a home. Let logic and lifestyle guide your decisions. Our homebuyers Q & A can help you determine whether or not now is the right time to buy a home.
What is the real estate market in this neighborhood?
Get to know the real estate market in the area where you want to purchase a home. Do homes get bought and sold frequently? What is the average price of a home? Are there Homeowners Association (HOA) fees? What is the average property tax assessment in the area?
Does it feel like “home”?
When looking at homes, consider the neighborhood. What is nearby and is it of interest to you? Are you close to work and/or great schools? Do you want to be within walking distance of a park or entertainment venue? Are shopping and dining establishments too close or not close enough?
What am I really looking for?
Single-family, detached homes are often what springs to mind when you begin thinking about a home purchase. However, there are a lot options when it comes to home buying. Maybe your lifestyle is better suited to a condominium or townhome. Maybe you’d prefer to purchase a duplex and collect rent on half of it.
Where is your life going in the next 5 years?
Purchasing a home requires a fair bit of cash up front for the down payment, closing costs, realtor commissions, mortgage insurance and taxes. If you aren’t going to live in the house for at least 5 years, you may not recover the expenses. If you anticipate a relocation or growing family within the next 5 years, it may be better to wait on a home purchase until you have a better sense of long-term stability.
Are you handy?
Home purchases will require some level of maintenance. Sometimes it’s as simple as replacing a light bulb. Often times it’s more complex like plumbing or electrical. Are you able to make some, or any, of these repairs and updates yourself? Do you have a plan to set aside money to pay someone to do them for you? How about shoveling the driveway or mowing the lawn? Routine maintenance is a must to make your purchase an investment that pays dividends.
Homewood Federal Savings Bank has a variety of home lending options for you when you’re ready to purchase. Our local Baltimore bankers will help you make sense of the current housing market and guide you to resources to ensure your investment in a home is a good one.