If only buying a Northern Illinois house were as easy as having the cash on hand for a down payment. Unfortunately, it isn’t this easy and before you buy a Northern Illinois home, you need to really sit down and consider the changes that will take place in your life by becoming a Northern Illinois homeowner. You will also have to figure out how being a Northern Illinois homeowner will affect your budget and lifestyle before you commit to buying a Northern Illinois home. From the home warranty to neighborhood amenities, here are seven considerations before you start searching for your dream home.
What do You Want to Spend?
A common mistake that Northern Illinois buyers make is to spend what they can afford, which is at the top of your approved loan. You want to avoid doing this because you still have to take into consideration ongoing expenses such as property taxes, homeowner’s insurance and homeowner association fees. It’s important to plan in advance for these expenses because these costs are not necessarily static; these expenses can increase and you will be required to pay them for as long as you live in the home. A good tip is to keep your mortgage payment to no more than 28 percent of your salary so that you are able to handle additional fees that come with home ownership.
Research Available Loan Programs
Head over the HUD.gov to check out state programs for which you might qualify. As an example, in Maryland, Community Development Administration Loans are available in order to make homes more affordable for buyers. The requirements to qualifying for this type of loan may be as small as taking a certain number of hours in a homeowner’s class.
Pick a Neighborhood That Works For You
When you are preparing to buy a Northern Illinois home, you want to be sure that you are buying in a neighborhood that fits your lifestyle. For instance, if you have kids, be sure the neighborhood is in a great school district and if you want to be able to walk to restaurants and shops, it’s a good idea to settle in a more established, historic area. As you are checking out your neighborhood, remember to pay attention to the neighbors. If you hear lots of screaming from children or dogs barking, be sure to pay attention because those are the things you will have to live with.
Budget in Furniture
Remember that once you’ve purchased the Northern Illinois house, you will still need to fill it with furniture, unless you like eating and sleeping on the floor each night. You may think furniture is relatively inexpensive, but real estate professionals warn that furniture may cost up to 25 percent of the cost of the home.
Know How Long You’ll Stay
Unless you just purchased your absolute dream house, you need to consider the cost of eventually moving out. Not staying in the home for at least five years means that you probably won’t have enough equity built up to cover fees like closing costs and home inspection.
The decision to to buy a Northern Illinois home is not something you want to rush into. Take the time to really think through every aspect of purchasing a home and what your life will be like after you buy. Carefully thinking through things before your purchase increases your chances of you being a smart and successful homeowner.