Buying A Home? Consider These Four Things First
What Matters Before Buying a Home
When buying a home, there are a few key factors that should guide every decision you make. The most important things for homebuyers to consider include:
- Being able to afford a home based on your current situation
- Not overpaying based on market value
- A home’s location, including neighborhoods and school districts
- The age of the home and its major components
Why Financial Security Matters When Buying a Home
Notice how security plays a major role when buying a home. It’s only natural to feel some hesitation—this is a significant investment. And that sense of security goes beyond just the financial commitment. Without it, moving forward with confidence becomes difficult.
It’s also worth noting that three of the four factors above directly tie back to money, making financial clarity essential before taking the next step.
Understanding Affordability Before Buying a Home
Affordability is the foundation of buying a home. If your current circumstances don’t support it, it may not be the right time to move forward.
What’s affordable for one buyer may not be realistic for another. It comes down to your ability to budget for every cost associated with the purchase.
Your debt-to-income ratio is one of the clearest indicators of whether you’re financially prepared. Lenders will evaluate your income, debts, assets, and liabilities to determine what you qualify for.
However, just because you’re approved for a certain amount doesn’t mean you should spend it. A sustainable mortgage should align with your long-term financial comfort, not just lender approval.
Avoiding Overpaying in Today’s Market
Another key part of buying a home is making sure you’re not overpaying.
Home values have risen significantly in recent years. Since the COVID pandemic, prices in the Greater Scranton market have increased by 54.8%.*
While opportunities still exist, buyers should approach the market thoughtfully. Consider how long you plan to stay in the home. If you sell too soon after overpaying, you could face financial setbacks.
As a general guideline, planning to stay in a home for at least seven years can help reduce the risk of loss. While real estate is often a strong investment, there are no guarantees.
How Location Impacts Your Home Buying Decision
For many buyers, location is the first and most important filter.
Even if a home checks every box, its location can make or break the decision. School districts, commute times, and nearby amenities are all important to think about.
When buying a home, consider:
- Distance to work, school, and daily essentials
- Traffic patterns and noise levels
- Neighborhood atmosphere during different times of day
- Walkability and overall community feel
Since you can’t change a home’s location, it’s worth evaluating this early in your search.
Evaluating the Age and Condition of a Home
Most buyers aren’t purchasing new construction. That means understanding a home’s condition is essential when buying a home.
A home inspection should always be part of the process. It provides insight into the condition of major components like:
- Roof
- Windows
- HVAC systems
- Foundation
As homes age, repairs and maintenance become more common. Knowing what to expect can help you plan for future costs and avoid surprises after closing. Call in professionals, like a reputable home inspector. They’re more than capable of assessing the age of a house’s components and appliances.
A few decades after the construction of a home, repairs become more common, and as a prospective buyer it’s important to understand what your yearly maintenance and repair costs might look like.
* Greater Scranton Board of REALTORS® stats; median home sales for March 2020, October 2022
