Buying a Home in Charleston? Take Stock of Your Life!
| By: Staff Editor, PremiereCharleston.com | 04/07/2009 |
Whether you are setting out to purchase your first home in the Charleston area or your fifth, a modest ranch or a beachfront spread, many of the basic guidelines will be the same. Regardless of your age, marital status or income, your home buying journey should always begin with an honest, complete inventory of your personal situation. In this article we will discuss some of the aspects of this important personal inventory, and how it can help reduce the stress of buying your Low Country home!
Why Buy a Home? Why Now?
People all over Charleston SC will have many different reasons to purchase a home. Many are tired of paying rent. Many see ownership as a smart long-term investment. Older folks may wish to downsize after the kids leave the nest. The point is for you to honestly answer this question for your specific circumstances. The answer will help you to begin imagining the kind of home that is right for you.
Distinguishing Home Wants from Home Needs
If you watch the home programs on TV, you may be convinced that your new Charleston-area home absolutely MUST have stainless steel kitchen appliances - even though you don’t cook. This is an extreme example of a common problem: homebuyers who are dazzled by features like premium finishes and vast square footage, and buy more home than they need--or can afford.
Perform a Financial Self-Check Before You Begin Your Home Search
Setting out on your Low Country home buying process without a true, detailed picture of your finances is a recipe for disappointment. Sometimes, you are disappointed when you set your sights too high, and your mortgage loan is denied. Believe it or not, this disappointment is better than the alternative: being approved, buying a home at the very top of your range, and then scraping to make your monthly mortgage payment. This is what they mean by ‘house poor."
There are several useful steps to a financial self-check, including:
- Drawing up a household budget. Ever wonder, Where does it all go?" Now is the time to find out. The home buying period is a time when you need to seriously keep a lid on your spending.
- Determining your debt ratio limitations. This is the famous 28/36 ratio. Based on your income and your monthly debts, you can determine how much home you can afford, in terms of your monthly mortgage payments.
- Getting pre-approved. Work with your lender to determine the upper limit of your purchase budget. No more falling in love with the one that got away! What’s more, if you find yourself in a competitive bid situation with other buyers, pre-approval can give you a big advantage!
Let’s face it--buying a home in Charleston will never be a stress-free activity. It is simply too big of a purchase decision—the biggest one you are ever likely to make. However, there are common steps you can take to reduce the stress of home buying. Do yourself a favor and make an honest assessment of your lifestyle, your family plans and your finances. That self awareness—along with the help of a qualified Charleston area REALTOR - can help you make a home buying decision you’ll be happy with for years to come!
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June 16, 2010
