Watch Out! Common Things to Check Before Buying Your Dream Home

New home buyers, we know it’s easy to become overwhelmed when you enter the market for the first time. Friends, family, colleagues, and even very distinct acquaintances will share their opinions if you are a first-time home buyer. While most are looking out for your best interest, they are unaware of what is happening in the fast-changing housing market.

You need to be prepared and have your questions ready. No matter others opinions, you are buying the home. It’s your comfort level that will help you decide if becoming a homeowner is right for you.

Here are three essential questions to ask before you purchase a home.

Why am I Buying a Home?

Put the financial consideration aside for a moment. Think about what made you want to buy a home in the first place. Usually, the reasons don’t have to do with money. 

Instead, home buyers focus on how the house will impact their family in the future. A study done by the Joint Center for House Studies at Harvard University found there are four reasons people buy a home:

• Better schools for their children
• A safe environment
• More room for your family to grow
• Personal control of their space

These factors are the most common reasons people look to buy a new home. When you ask yourself why you want to purchase a home, do any of those factors come up? Spend time with your spouse or family members who are involved in this decision and determine why you want a home in the first place. Creating this list will help when searching for a home and help your real estate agent find the best home for your needs.

What is the trend with home values?

Our current economy and housing market are strong but not without challenges. Home values and mortgage rates have increased throughout 2023, and experts think this will continue into 2024. 

If you are looking to purchase a home but want to stay within a budget, it may be in your best interest to move quickly. The forecasted mortgage interest rates say the market will continue upward. Meanwhile, the low number of homes for sale persists, causing home values in many markets to continue to increase. 

However, this can differ from market to market. Some cities are seeing housing values decrease or grow slowly enough that they are becoming a deal. Check in with a local real estate agent who can provide the latest insights on how the housing market is trending where you are searching for homes.

What About Current Mortgage Rates?

The ticket price is not the only thing you should be concerned with when purchasing a home. Mortgage rates are constantly changing and can have a considerable impact on your monthly payments. 

Current trends in late 2023 have mortgage rates rising near 8%, a multi-decade high. This is something to consider if you are debating the right time to purchase a home since the rates may be even higher down the road. 

Even a slight change in percentage points can lower or increase your overall housing costs by thousands in the long term. If you haven’t already, we recommend playing around with a mortgage calculator.

Bottom Line

You and your family are the only ones who can determine the right time to purchase your dream home. Decide precisely why you want a new home for your family and decide on a budget that will be comfortable moving forward. This budget may affect the time it takes to search for a home since home prices and mortgage rates are increasing. Keep looking, saving, and working with a real estate expert, and before you know it, you’ll be buying your dream home.

Updated October 2023