Buying a home is an exciting endeavor, but it is also a major financial decision. Here are some things to talk about when you're planning on looking at real estate for sale.
How Is Your Income Projected to Change?
You might decide to jump into home ownership once you've saved up a sizable down payment and have a job that pays decently. But knowing how your income will change in the future is important too. If you've been in your career field or at the same income level for many years, then you're probably set. But if you've just moved up an income bracket, you might want to wait until you know that you'll be able to maintain that income level before you jump in at the top of your spending limits. The same goes if you or your partner will eventually take time off work to care for small children; it must be factored into how much money you take out for a loan.
How Much Mortgage Can You Get Approved For?
Your mortgage approval limits will tell you something about whether you're ready to buy a house. If you like what you're seeing on the real estate listings boards at your price point, then you're good to go. If you can find something you like for even less, then that's much better; you'll save money for other potential life adventures.
Do You Plan to Add On?
If you plan to add on to your home in some way, such as adding rooms, renovating, or adding special features, this is something to consider upfront when searching for properties. For one, you might look at properties that are a little less expensive. But you should also consider how much those add-ons would cost at each property; for example, adding a deck to a second floor can be much more expensive, so it's something to consider when you've found a property that has the best space for a deck on a higher floor.
Will Your Home's Value Grow?
Another financially savvy thing to do when shopping for real estate for sale is to look at homes in neighborhoods that are becoming more popular. Rather than the cheapest properties, or the ones that have already become well-known, these areas present the best chance for a big increase in value. Ask your real estate agent to help you find listings in areas that are up-and-coming so that you can make the best investment choice in your new home.