House hunting can make you indecisive and unsure. You get worried because it is a big step, its a big investment. You might love a home, but it’s to expensive. The location may be perfect but you not sure about the carpet and lime green walls. So how do you know if your ready to make an offer? Stop and ask yourself these questions to make you a little more confident in your decision.
1. Does it fit in my budget?
It is very easy to take more then you can chew. Its called being “house poor”. That is when you spend a majority of your income on a home, and have little cash to spend on other items. If your income took a hit, or you have an emergency expense, these things can be catastrophic if your overspending on your home. So don’t make this mistake. Make sure your home will fit into your budget.
First, go through the pre-approval process. You will need to contact a lender, they will take you through this step by step. The pre-approval estimates the size of loan you can handle and will calculate a monthly payment.
Second, Practice making your mortgage payment. Once you have a target mortgage payment, practice for a few months. Here is how, If the payment is more than you’re currently spending on housing, place the difference in a separate account. If you feel that the additional expense is easily manageable, then you’re probably ready to make an offer.
2.Do you know how much work is needed?
Do not underestimate the difficulty and cost of home improvements. Before you make an offer, carefully assess the condition of the home, and make an estimate on how much time and money you are able to put into it.
ALWAYS make your contract contingent on the results of a professional home inspection. A home inspector will itemize the major problems and recommended repairs. Hiring an inspector to look at the home could save you a lot of money and heartache. I know my first home inspection resulted in the inspector finding mold in the attic and a rodent issue in the crawlspace. Buyers can get professional estimates for those repairs, and use that information to re-negotiate the purchase with the seller.
3. Do you like the location?
One of the things you cannot change about your home is the location. You should ask yourself a few questions about the home’s location:
How close is the home to work/school/family/groceries?
Does the neighborhood feel like a good fit?
What is this neighborhood like at different times of the day?
Is this a drastic change from my current location? If so, am I ready for that change?
If I were choosing a home simply based on location, would I choose this home?
If you’re discouraged by a response to any of these questions, you might want to rethink your offer.
4, What is your initial reaction?
Basically what is your gut telling you? Are you already picturing yourself as the homeowner? Does it feel right?
Your subconscious always seems to have a way of pulling together information and creating it into an emotion. What is your emotion? Excitement, that you found you perfect home?
What most people say is to trust your instincts. If a home fits within your budget, meets you standards for location and you can already imagine yourself living there, then you are probably ready to make an offer.