If buying a home is on your list for 2020, you’re likely excited and overwhelmed at the possibilities. Between houses, realtors, financing, and the many other factors involved in buying a home, you’re left wondering if you’re making the “right” moves. While everyone’s situation is unique, there are standard tips that may help you in your search.
Our 5 Best Home Buying Tips for 2020
1. Make a decision based on logic, not emotion.
Because buying a home tends to be full of emotion, we often rush the process because we want to jump to the fun part—getting the keys. Take your time to think through the reasons why you’re buying a home, what your primary goals are, and what a realistic budget will be. If you let your emotions run the show, you might find yourself with a house that doesn’t meet your budgetary or lifestyle needs.
2. Consider your housing budget.
This tip may sound like the most basic, but often home buyers will consider that they can afford “X” amount in mortgage payments and then they’ll stop planning beyond that. You must also factor in other home-related costs, such as taxes, maintenance, and homeowners association fees. Once you add those into your housing budget, you might find that your purchase price should be lower to stay within your means.
3. Compare mortgage lenders.
Shop around for the lender and rate that aligns with your goals. The general rule of thumb is to compare three lenders, keeping in mind that rate isn’t everything. If the rates are comparable, it is reasonable to choose the lender who makes you feel more comfortable. A welcoming, helpful atmosphere goes a long way when you’re dealing with the stress of buying a house. Whichever you choose, shopping around will reassure you that you’ve done your research and that this is the best choice for you.
4. Work with a realtor you trust.
Doing your research to find the right realtor will serve you well throughout the home buying process. A realtor who is knowledgable about the area can find what you’re looking for and negotiate on your behalf to ensure you pay a fair price. They can also help you with other steps along the way, such as finding a home inspector, appraiser, and title companies.
5. View multiple houses.
Make time to walk through multiple houses, documenting what you like, what you don’t, and what your must-haves are. The slower you take the process, the surer you can be that you’re choosing the best house for your money.
Connect with your Financial Advisor
When it comes to buying a new home, the key is to not rush the process. Take your time, understand the process, and give yourself time to make an informed decision. Oftentimes, an outside opinion can help.
Having an outside perspective can provide insight into what you can do to stay on track for financial well-being. A financial advisor can help you determine how buying a home fits into your long-term financial goals, while also helping you avoid common home-buying mistakes.
Southwestern Investment Group’s team of advisors can guide you through the financial aspects of the home-buying process. We approach your financial plan holistically, taking your entire situation into account before we create a plan to reach your goals.
Contact us to begin working toward your best financial future!
