5 Things to Consider Before Buying a New Home

5 Things to Consider Before Buying a New Home

Becoming a homeowner is part of most adults’ dreams. But it’s not all glamorous and happy-ever-after. There’s plenty of work and thought that every homebuyer needs to do. Before you get a new mortgage payment, it’s a good idea to consider these five aspects of buying a property.

1. Buy a home that works with your financial situation.


With housing markets around the U.S. at all-time highs, it’s important to have a bit of fiscal responsibility. This doesn’t mean that you have to try to increase your cash flow, improve your credit history, or improve your current home’s value overnight. Rather, it takes some time to decide what you want from the numerous private mortgage lenders that you can use.

A home loan is probably the largest amount of money that you’ll ever borrow. It’s wise to have the right private mortgage lender working with you. Unlike a traditional mortgage lender or other financial institution, they can give you a competitive edge in the market with cash-like offers without using your own money. Private lending could be the perfect financial situation you need without settling on a higher interest rate.

2. Consider your present and future self when making decisions.

A common mistake people often make is they don’t consider the bigger picture. A home purchase is often more than just the next five years. A loan term can be upwards of 30 years. This means you’ll have a monthly mortgage payment until you’re a grandparent.

So, have a vision for you during the life of the loan. Do you plan on needing more space for another family member? Is there a chance you’ll want to do an addition or change the floor plan? These don’t have to be projects in the near future, but a property that doesn’t have space or capacity for them will be problematic.

3. Look at more than just the aesthetics of the house.


Potential buyers often have a dream home. The image of the perfect piece of real estate is of a three-headed shower, gourmet kitchen, and a swimming pool to finish off after a hard day. The issue is when people visit a property for a single day, see one or two of these wishlist items, and think they’ve found the perfect house. When you’re going to borrow hundreds of thousands of dollars, you need to understand where your money is going.

Ask yourself several questions about the condition of the house. Is there mold or mildew in the bathroom? What is the condition of the old tub? A bathroom renovation isn’t a deal-breaker, but be prepared to hire a trusted company to install replacement tubs in order to get the home of your dreams. A new bathtub and other restroom accessories can take you a step closer to your dream. Just make sure you aren’t overlooking potential warning signs because you like the paint color in the dining room.

4. There is time and effort that goes into the process.

Whether you use a conventional mortgage, a private mortgage, or cash to make your purchase, the process takes time. It takes time for a traditional bank loan to be processed or collateral to be evaluated. Contracts must be drafted and signed by both parties. Often, there is an inspection period for potential buyers to thoroughly check a property. Even the savviest real estate investor knows that you can’t rush these steps. The best way is to take things slow and enjoy the process.

5. Purchasing a home doesn’t define you.

The final thing to remember is your home doesn’t define you. Your home’s purchase price doesn’t mean anything other than determining your monthly payment. If you need more time to raise your credit score or save for a down payment, take that time. Buying a home should be a fun process, don’t let negative outside factors impact your decision to become a homeowner.