Your idea of a dream house may differ radically from that of your neighbor or your best friend. So many things can vary-architectural style, the materials used, the floor plan, the size and number and kind of room-the list is virtually endless. But there are a few things that apply to everybody, across the board. They are the rules that each and every person who is considering buying a home needs to know and follow-if you want to be a wise consumer and a happy homeowner.
Golden Rule Number One: The three most important things in real estate are location, location, and location. That’s because location equals value. It’s up to homebuyers, of course, to determine what “value” means to them-and specifically what they value most. For instance, some homebuyers want to keep their commute short and live close to where they work. Others with school-age children might prefer areas with high-quality schools and a family-friendly atmosphere. While those who are nearing retirement might put a priority on the proximity of medical facilities and communities or neighborhoods with services, facilities, and amenities that cater to seniors. Safety and security are frequently major issues for many people. Keep in mind that it’s relatively easy to find out about local and area crime statistics, as well as the proximity of police and fire protection to neighborhoods you are considering.
Location also strongly impacts your financial investment in a home. So a smart thing to do is to begin your search for a home in areas that are prosperous and/or growing. Good signs of this are property taxes and desirable school districts-they both contribute to property values. If you want to learn more about a school or a school district’s ranking, go to the Texas Education Agency’s website: http://www.tea.state.tx.us.
Finally, location will make a difference whether you personally feel comfortable and happy in a neighborhood or not. In order to get a feel for what it might be like to live in an area you are considering, drive around in it at different times of the day and night, during both the week and weekends. See what traffic is like at peak traffic hours. Observe if homes and landscapes are nicely maintained. Think about things like the convenience of supermarkets and shopping. And don’t be afraid to get out, walk around, and talk to a few residents. Ask them what they like and dislike about the area. By the time you’ve done your homework, you’ll have key insights and an overview that will truly be useful in making a very important home-buying decision.
Golden Rule Number Two: Determine how much of a financial investment you can afford. Here’s a list of things you need to consider in order to come up with a realistic number.
There are several interest calculators available on the internet at no charge. They will help you calculate payments on the price range of homes you think you might be able to afford. Just keep in mind that these calculators, while helpful, are only very generalized estimates. They may not include things like taxes, etc.
Include other monthly financial responsibilities you have-such as car payments, credit card bills, daycare, any outstanding loans, and your credit history. A lender will take all this into consideration before approving you for a mortgage loan.
Don’t forget the importance of a down payment. Most (but not all) home purchases require at least a five percent down payment.
If you would like to purchase a lot and have a home built, remember that most builders require that all extras and upgrades will be paid for up front.
Don’t forget about closing costs. You can expect to spend several thousand dollars before all the papers are signed and you have the keys to your new home in your hand. You should also know that some financial lenders might want you to have several months worth of mortgage payments set aside before allowing you to close on the purchase.
If you are buying a newly-constructed home, don’t underestimate what your annual tax bill might be. Remember, most newly-built homes are usually not taxed at their full value the first year. That’s because taxes are assessed on only the “unimproved” property prior to construction. Many new homeowners are shocked and financially stressed when they get the following year’s tax bill, which then taxes the land and the “improvements” (the new house).
Golden Rule Number Three: You must be ready to commit to the expense and time necessary to maintain a home-inside and out. In addition to that monthly mortgage and taxes, you have a commitment to your neighborhood to maintain your lawn on a weekly basis, in addition to landscaping that is in a style similar to your neighbors. You must also protect your home (think roofing, painting, and so forth) against the occasionally harsh South Texas weather and climate. Then there’s the inside of your home. Beyond monthly bills, there will sometimes be repair and replacement costs associated with plumbing, heating, air conditioning, and major appliances.
If you still think you want to be a homeowner, great! Start following The Golden Rules, and you could ultimately rule over your own castle. Which may not be worth its weight in gold-but certainly can be a priceless, rewarding experience.
Find new homes for sale in the Rio Grande Valley & South Texas online at iNewHomeSearch.com by the area’s leading builders featured in the Rio Grande Valley New Homes Guide
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