Questions to Ask Yourself When Buying a Utah County Home
As a real estate agent, I get asked about how to find the right property on a daily basis. I’ve come up with a criteria of 3 questions to ask yourself to help determine the right location, size, price, and type of home. If you answer these questions honestly and objectively, they should be very beneficial for finding the hight house.
1. What’s The Purpose of The Property?
Are you buying your first home for a young family or purchasing an investment property to generate monthly income? Are you living in a townhouse looking to upgrade to a larger house or are you upside down in a large house looking to reduce your debt to income ratio? These are the fundamental questions to answer when you start your real estate adventure.
2. How Long Do You Intend to Own The Property?
After you understand the full purpose of the property, you can start thinking about the deeper questions. One of these is how long do you intend to own the investment. This will help you to decide the type of financing your going to want to pursue. If its your first home or one you intend to live in for a long time, we highly recommend going with a 30 year fixed mortgage. This is by far the safest of all the loan options.
If you have a large savings and lower monthly expenses, we recommend looking into the 15 year fixed. This is going to have a lower interest rate, and will cut down on the cost you have to pay on the loan by a very large sum. If the property is only for a short term investment, you might want to think about an ARM mortgage. This is going to be interest only and have a large balloon payment at the end of the term. If you go with this option, its going to be critical to sell the property before the loan comes to an end.
3. How Much Can You Realistically Afford for Monthly Payments?
I’d much rather live in a house I can afford to enjoy rather than worrying about making my mortgage payment each month with a large mansion. When you start talking about people’s finances it can get real personal real quick. That’s why this is a question you should discuss with your close family and perhaps a financial advisor.
The important thing when thinking about your budget is to not get caught up thinking about how your potential house stacks up in comparison to anyone else. Don’t worry about the number of square feet of your sister’s new place. Don’t worry about the size of homes of others in the neighborhood. Only think about finding the right house that will be comfortable for the people most important to you, and how the investment is going to impact your ability to provide for those people after the purchase is made.
Buying a new home should be one of the most fun and exciting experiences of your life. After you get in your new home it should be an experience you treasure and appreciate. Finding the right property that suites your needs, and is the right financial fit is a big part being regret free.