You already know that buying a house will be one of the biggest financial investments you will make in your life. As such, it can be pretty daunting, right? What if there was a one-size-fits-all kind of guide for you to follow? Now, there is! Take a look at these top things to do when buying your Alpharetta home.
1. Think Long-Term
It would be futile to think that your investment in a home could ever be short-term. Even short-term investments in the real estate world don’t end up being short-term in actuality. A home is a massive investment and a linchpin when it comes to stability. As such, we advise you to think long-term rather than the other way around. Invest in a home you will inhabit for at least five years. Therefore, it should have the kind of space you need to grow in that duration.
2. Buy to Improve Your Life
Your home is an investment, yes. But it’s also a space where you sleep, eat, are surrounded by friends and family, and raise your children. Your home is where your life will take place. The real estate market is far too volatile to invest in a property just because you think it will generate a big short-term financial return. It is possible you may have to live in it if you aren’t able to sell it as quickly.
3. Stick To Your Budget
You must start in the real estate market with a set budget. You cannot do this while searching actively for properties because, believe us, feelings will get in the way and will cause you to invest in something far more than you can afford. It happens to more people than you may think. It is very easy to forget a budget while looking for a home, which is why you must vigilantly stick to yours in order to avoid defaulting on mortgage payments down the road and finding yourself subject to foreclosure.
4. Aim for a 20% Down Payment
If you find that you are able to afford a down payment of 20 percent, do it! Here is why it is ideal for you down the line:
- With a 20 percent down payment, you will find yourself paying a much lower monthly mortgage amount than you would in rent.
- It reduces your overall financial risk. The last thing you want is to owe more money than the property is worth, and therefore eventually resulting in a short sale.
5. 6-Month Strategic Reserve
Yes, your down payment will be the biggest expense when buying a house, but you must build a strategic six-month reserve and keep it in a separate bank account than the one you normally use on a regular basis. This amount will be a great help to you if you get sick or unexpectedly lose your job. You won’t find yourself in financial hardship because you will have enough saved up to cover yourself.
Do you still have questions on how to get started on your Alpharetta Home? Give your trusted real estate friends at AlpharettaZen a call to discuss real estate opportunities at the earliest.