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Home Buyer Guide - Know Your Home Buying Budget, Your Family Needs and Your Wants

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  • Home Buyer Guide - Know Your Home Buying Budget, Your Family Needs and Your Wants

    Before home buyers do their first home inspection, they have a lot to consider when buying a home.

    Home buyers first have to decide on their basic present needs, and their future [secondary] needs and their wants, and be able to determine their budget to make better home buying choices.

    Home buyer Tip # 1. Know your family's present primary needs. Its essential that home buyers first understand their present home buying needs and ensure that they will be met. Meeting your present primary needs should be the main purpose of buying a home. These primary needs are separate from your future needs and your wants. As a home buyer knowing your family's actual present primary needs will help you make the right buying decision. You need to determine what is most important to you and your family? Meeting future needs and secondary needs would be nice to have also. Home buyer tip # 2. Be prepared to sacrifice some your future needs and your wants. A home buyers budget limits what they can include in their wish list. It has been said that our needs are limited, but our wants are insatiable. Our wants are limited by our incomes and ability to buy. Home buyers needs must be met by our home purchase, and they must be met with our ability to repay the mortgage required. Buy a home by only looking at homes within your budget. Don't over-commit on the home. The family with an annual income of $300,000 may have the same basic needs as a family with an annual income of $80,000, but their wants will push their home wants to their capacity to repay a mortgage.
    When you buy a home its important to know the difference between your wants and your needs. You also need to discern your present needs from your future needs.


    Example of home buying present needs and future needs. For instance, a couple with a child on the way can have their home accommodation needs met with a three bedroom,or even two bedroom home. The new baby may not be put into a separate room till after the first 12 months or longer. Yet many couple's will seek a four bedroom home because they see themselves having more children later, and requiring a spare rooms. An affordable four bedroom home may mean a home 20 minutes further from work and shops and amenities. This will mean higher fuel and car costs, and more could mean 3 to 4 hours a week more spent in traffic, and that means less time with your new baby and relaxing at home. And more travel means more chances to have an accident on the road or getting traffic fines. The three or two bedroom home might cost less now, and have lower mortgage repayments and allow you to save more or pay down the mortgage sooner. You the have the option to extend the home as you family grows or move to a larger home. Remember that your first home will rarely be your last home, so look after your present home buying needs first, and let the future take care of itself.

    What needs must you as a home buyer satisfy now within your budget? You should ensure that the home you are buying will satisfy your present needs and be within your budget. Only concern yourself with your future home needs once your present needs are met. Home buyer tip # 3. Know your home buying budget. Your budget to buy a home is determined by your capacity to service a home mortgage, and this is determined in turn by:
    1. The number and age of your dependents
    2. Any existing credit commitments and
    3. Your total income.
    Mortgage lenders today will not allow you to buy a home that is outside your budget. This is a big change in mortgage lending and is one of the reasons that home prices have fallen in many markets.



    Examples of home buying wants instead of needs. Many potential home buyers allow their wants to control the home buying decision, and I have included a couple of examples.

    Acreages: Acreages will give you space, but will increase transport and commute times and rob your children of other amenities. And upkeep of an acreage property will make you a slave to your garden. Many people that buy an acreage usually sell within 5 years because the work load and costs of maintenance becomes too much them, especially older people. Unless you are passionate about spending your weekends gardening, think twice before buying a acreage home.

    Swimming Pools: Swimming pools are wants that many home buyers mistake as needs. Swimming pools are fun entertainment and friend magnets, but create costs and work maintaining them and getting little usage over the year may make them a poor investment. many people eventually fill in their pools or sell the house to get away from the maintenance.

    Home buyers take-away.

    When it comes to buying a home, as in life, we can't have everything. Therefore we have to determine what we can afford to pay, what we must have, and what we can do without. Doing this will make the home buying decision easier, less stressful and ensure living in the home is a whole lot better and more fun for every one of the family members. It also means that the home that you buy will satisfy your present needs, both yours and your family's members. Isn't this the most important thing to you as a home buyer?


    Article Source: http://EzineArticles.com/4525318
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