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Before getting started on your house hunt there are several items that need to happen first. It’s enticing to get caught up in wanting to visit homes—walking through the rooms and imagining yourself enjoying delicious dinners, playing with the children in the yard or swimming in the pool, and joining in community events with your neighbors. These experiences are inviting. Instead, the actual starting point begins with determining your housing needs. This may sound like deciding on the number of bedrooms, bathrooms, and closets but it’s so much more.
Everything begins with your budget. How much can you comfortably spend on a home without compromising your financial stability? It’s okay if you don’t have an immediate answer. This is where we’ll dig deeper into the numbers to help you figure things out.
When your buying agent asks, “What is your budget?” they are trying to be thoughtful in showing you listings in your price range along with showing you homes that won’t over-stress your budget.
Your Down Payment: A target amount for a down payment is 20% of the purchase price. Hopefully, you’ve been saving for your home purchase. Some lenders and mortgage options may be possible with a smaller percentage amount or no down payment. Ideally, you want to make as large of a down payment as you’re able to make. This positions for you potentially lower monthly mortgage payments and reduces the amount a lender covers.
Your Mortgage Options: Research the current mortgage rates and options available for various home loans. Often, you’ll find numerous options are available to choose from. For instance, are you a veteran or currently in the military? You may be eligible for a VA home loan. As your talk with lenders, you’ll learn about the various types of loans and which options will best suit your needs.
TIP: As you research your options, take a moment to get a pre-approval letter. This letter indicates how much a lender is willing to extend based on your own unique financial background and projections.
Additional Financials to Calculate: The down payment and the monthly mortgage payment are two elements most often discussed but there are a few more financials to consider. These items include: property taxes, homeowner’s insurance, and potential utility costs. Discuss these with your buying agents so you can get real budgetary numbers for the specific home you’re interested in. Your agent will also be aware if the home you’re interested in is located in a community with applicable homeowner’s association fees or condo fees.
Looking Ahead: Do today’s earnings reflect where you’ll be in one year, five years, and ten years? By looking ahead, you can better plan for your immediate needs as well as future needs as your financial projections change and evolve.
Now that you have some solid numbers and the expenses aren’t exceeding 30% of your gross monthly income, let’s move ahead to determining what you’d like your home to look like, to include, and the ideal needed square footage.
Perhaps you’re planning to retire soon so downsizing is something you’ve been thinking about. Or maybe you have an elderly family member that may move-in with your family and multi-generational living requirements need to be accommodated in your future home. All of these future plans and your lifestyle matter.
Number of Rooms: Determine how many bedrooms, bathrooms, and key areas your home needs to contain. If you work from home, having a dedicated room for a home office is essential. If you have multiple vehicles and the home you’re visiting has a one-car garage, is there enough parking along the street, in the back, or anywhere nearby?
Square Footage: How much space is needed throughout the whole house? Consider the size of your family. Consider your lifestyle and if you need space for entertaining. Would you need space for a home gym, a home theatre, a workshop, a pool, a garden, etc.?
Consider the Neighborhood: You may find you don’t have the time or interest to maintain your lawn and would be thrilled to have a HOA that includes landscaping maintenance. Living in a community with access to a pool, walking trails, pickleball courts and other amenities may be what you find appealing.
Location: Shorter work commute times and being conveniently located near quality schools are two top requests for families with school-aged children who participate in after-school sports and activities. We spend so much time in our vehicles that when we’re minutes from the places we frequent regularly—work, school, shopping, medical services, etc. Living in a central location allows us to enjoy more special moments with our family and friends instead of feeling as if we’re constantly on the road driving.
Lifestyle Preferences: These can range from preferences and needs for living in a one-level or two-level home to desiring a condo in the heart of downtown or wanting open-spaces and a rural setting. Consider your hobbies and interests. Love to cook? A gourmet kitchen may be a must-have. Perhaps tinkering in the garage is one of the ways you relax on the weekends.
Meeting with your buying agent to discuss the current market trends will give you an idea of what’s happening in key neighborhoods you’re interested in. My team and I share weekly market updates and are committed to keeping an eye on the market. After our meeting, you’ll learn what’s available, what’s coming to market soon, and which homes meet your criteria.
There may be special features you find necessary in a home. These unique needs can include:
When you take into consideration each of these housing needs, you’ll be able to narrow down what you’re seeking. Ready to visit some homes and start the conversation around your housing needs? It would be my pleasure to chat with you. Let’s talk soon.
Since 2004 Sara Lyn Nguyen continues to bring a wealth of knowledge and expertise about buying and selling real estate around the Houston area to those she serves. Sara is a multi-year award winning REALTOR® and relocation specialist where her clients trust her to have up-to-date information on the real estate market. She has been one of Gary Greene’s Multi-Million Dollar Top Producers, and citywide was the #2 Top Producing agent in 2020, #3 in 2021, and #2 in 2022. When it’s time to buy, sell, invest, or relocate speak with a trusted professional knowledgeable in the homes and neighborhoods of Fort Bend/Sugar Land and the surrounding region.
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