Love a single family home in Ellicott City, Maryland? 4 things to know before buying it
After looking at a thousand single family homes up for sale in Ellicott City, Maryland, you may have found just the one you want to buy. But before you make the biggest financial decision of your life and sign a purchase contract, you need to make sure your decision is not based solely on emotions. You should be getting what you actually need and the purchase should not leave you financially strained.
Here are a few important things you need to keep in mind before buying any of the single-family homes up for sale in Ellicott City, Maryland:
Is it in your budget?
The first question you need to ask yourself before zeroing in on a home is whether it falls within your budget. Don’t buy something you can’t afford. A home is the most expensive purchase in most people’s lives. If you run your finances into the ground, you will end up regretting your decision. You may start to feel regretful and stop enjoying your home!
You should familiarize yourself with basic investment metrics such as loan-to-income ratio. You can even talk to a professional financial counsellor to discuss how much you should invest in a home based on your current income and liabilities. Don’t buy a home based on assumptions of your income in the future.
Are your finances in order?
Did you know that you have to put at least 20 percent of the purchase price down when buying a home? If your down payment is less than 20 percent, you will have to pay Private Mortgage Insurance (PMI) on top of your monthly installments. Make sure that you can afford it.
You should also explore local and federal mortgage assistance program if you are buying a home for the first time. These programs, designed to help first-time home buyers, can reduce the financial burden to a great extent.
Are you buying something you don’t need?
A single family home is a great option for a family, as the name suggests. If you live alone, you may find it difficult to take care of a big property’s maintenance and upkeep. You should determine whether buying a condo or townhouse is a better choice in your situation.
The same goes true for amenities such as a swimming pool. You may absolutely love to have a swimming pool in your backyard, but will you have the time and money to look after its maintenance?
Have you inspected the neighborhood?
The house you are buying should be within comfortable distance from work. If you have kids, their school should be in close proximity.
Take a look at the community and make sure that it suits your age and lifestyle. For example an elderly couple won’t feel very comfortable living in a community of students.
Another important thing to determine is whether you are investing in the right property. Check out the condition of the real estate market in the area where you are planning to buy. What if you had to move to a different place due to job change or marriage? Will you get a good return on your investment?
Most home buyers let emotions cloud their judgment. You should ask yourself these questions and invest in a home only if you are completely satisfied. It will help you avoid the most common home buying pitfalls.