7 Tips You Should Consider
Before Buying a House

Owning a home seems like the most natural thing for most people. However, buying a house is an important and expensive decision. It affects your lifestyle, your financial situation and your dreams. You may feel hope, illusion, excitement, and maybe even a bit of stress, since buying a house is not as simple as it may seem to be. In this article we go over 7 Tips You Should Consider Before Buying a House.

Think it through carefully and review these steps before diving into the biggest purchase of your life.

It is possible to have a very positive and joyful experience when you take the time to investigate and learn about possibilities and opportunities in the market .

Before You Buy, Take Care of Your Finances

Getting your finances in order is one of the most important things you can do before buying a house. It’s a great way to prepare for the financial responsibilities that come with homeownership, like paying for repairs and maintenance.

Here are some tips for getting your finances in order before buying your first home:

• Start by paying off any high-interest debt and make sure that any credit card balances are at zero.
• Get organized by creating a spreadsheet that tracks all of your monthly expenses. This will help you see where you stand financially and how much extra money each month could go toward saving up for a down payment on a house.
• Review spending habits and cut back on unnecessary things.

Prepare for your future

Make a financial self-assessment and set realistic expectations for yourself. How do you see your finances in a few years? If you’re getting a bank loan, will you be able to afford future payments if interest rates go up?

Remember that home improvement tends to be expensive

Furthermore, remember to take into account and plan for the regular maintenance and other expenses you may need to pay for in the future.

Payment Methods To Buy a House

When you are ready to start looking at different houses to buy your home, find the financial option that best suits your needs and preferences.

Bank financing

Financing by owner

On the other hand, there are people who are willing to finance the sale of the property themselves, or give rentals with the option to buy, where you may not require a loan from a bank.

There is always someone who offers what you want and need, it’s just a matter of taking the time to find it.

There Are Always Hidden Costs to Keep in Mind

You can enlist the help of a real estate agent, especially if this is the first time you are buying a house, since they should have the resources and all the detailed information about buying a property, including all the costs involved.

Please remember that the cost of a property is more than the purchase price. There may be a lot of hidden fees like property taxes, property and homeowners insurance, moving expenses, closing costs, old appliances that need fixing, etc.

Take into account the costs of furnishing your new home, which can get pretty high. Bear in mind that you don’t really need to furnish your whole house from the start, so you can go on a need-to basis.

Memberships and utilities

Also, look for any county or city fees like garbage collection service (here in Costa Rica that is a municipal fee), or any other charges and fees depending on the city or country.

Hidden fees add up, so please bear all these in mind when creating your budget.

Write Down Your Wish List

Knowing your budget is key, but it’s also important to be clear about what you want.

If you’ve lived in different rental houses and cities you may already know exactly what you are looking for and what you definitely don’t want. Take the time to write down what specific details you are interested in and what are the deal-breakers. This way you won’t forget any of those once you start looking at different properties.

A bit of advice…

Take the time to see many options. If you don’t have a lot of time to spend searching, you can hire a real estate agent who will take the time to find the property that meets your desires. The more information you give the agent the better, like the size of the property, how many bedrooms and bathrooms you need, if you are looking for a single-family home, a condo or a fixer-upper, if you want a backyard, etc.

Location, Location, Location

Remember that location is one of the main features you need to pay attention to. For example, a “good” condo in a “bad” area may not be the best option.

Look for closeness to the amenities that you want (schools, health centers, shopping malls, parks). Visit the neighborhood during the week, on weekends and at different times of the day, walk a couple of blocks and take a look at your surroundings to see how you feel. This will give you an idea of how quiet or busy it is.

Furthermore, find out the following:

• If you plan to sell the property in the future, will it increase its value in the next 10 years?
• What are the crime rates of the area?
• How far will you have to commute to work? Or, if you work from home, are there stable telecommunication networks for mobile and high-speed internet? Does it have a reliable power supply?
• Would you prefer that there are not any electrical poles located in front of your home?
• Is the property close to public transportation? Does it have easy access to main roads?

Think Like an Investor

Think like an investor before buying your house. Take the following into account:

• You may want to consider buying a property in a great location, just in case you want or need to sell it in the future.
• Never rush or feel pressure to close a deal. Always take your time to see a lot of properties, and then calmly study and evaluate your options before making a decision.
• If you have the space, consider the option of renting a room whether for a week or for a longer period of time (whatever works best for you). This will give you extra income that you can use to help you out with the mortgage payments, for maintenance, other expenses, or to save for future investments. Just remember to do some research regarding rental rates in your area.

Other Things to Look For When Buying a House

Summary

There are many other things you can look for when buying a house that may vary depending on the weather, the country, city, and the lifestyle you want. So be sure to talk to people that know the place and know how to best guide you.

We hope that this information serves you in your process of buying a home. For more information or if you are interested in our services you can get in touch and we’ll be glad to assist you.

Frequently Asked Questions