The dream life for most of us is to own our home someday. So, we put in the extra hours and work to make enough income to buy a house. Now you’re ready to buy a house but unsure if its okay to take such leap during a pandemic. The truth is there is no better time to own a house. Although it may seem like things are not going as normal, life is going on fine whether or not there a pandemic. There is a report on bloomberg that there is a hike in home buying in the U.S during this pandemic. So, if you’re ready to buy a home, go ahead and get it. However, there are some things you need to know before you buy home. Here are what you need to know to buy a house during this pandemic.
Carry out due diligence on the Property
It is an exciting thing to get your home. However, there are some things you need to do before actual purchase. One of such things is to carry out due diligence on the property.
Due diligence before purchase helps you avoid making financial mistakes. You need to know that the property is valid for one without any legal issues. For any legal check, seek the advise of solicitors. Some banks actually do a thorough property search before lending for home purchase. So, if there is any thing shady, this will be spotted. Also, you need to check if the property is easily accessible ( if you want to commute to anywhere).
Also, there are other factors you need to consider like the space, size of the backyard or the area (whether the place is safe or calm etc.). So, before you opt to buy your home, ensure you carry out due diligence.
Expect a slow process for purchase
The pandemic came with its own baggage and impact on the pace at which business is done. Most businesses are short staffed or have do most work remotely. Some business are still struggling with digitalizing their processes to do business. This also affect the real estate industry too.
Unlike before you may not be able to visit the property physically for perusal. You may have to opt for virtual meeting or room tour due to the pandemic. The process of appraisal may be slow due to pandemic impact on businesses.
There may also be delays around scheduling home tour if you insist on in-person tour. Who wouldn’t? I would love to see every part my home before deciding. However, due to restricted movement and pandemic, this may take time.
So, if you want to purchase your home during the pandemic, you need a lot of patience. This is to ensure that you are making the right choice before closing the purchase.
Have a budget
Another part of buying a house that you need to do is to have budget. After valuation of the property and doing due diligence, by now you know want the house. However, you don’t want have difficulty to pay your mortgage as when due.
So, to know if your budget can cover your mortgage, use this mortgage calculator. It will give you breakdown of your re-payment so you can use it to plan your budget.
Also, you need to plan for other expenses like home association fees, taxes, insurance, maintenance etc. You may also need to opt for a house that will not need much renovations to cut cost. Property renovations is one place that drains funds in home purchase.
However, if you don’t mind renovating to your taste, have a set budget. It is so easy to want all the home ideas on Pinterest without paying attention to your pocket.
Another reason you need to have budget is to be able to pay for your mortgage payment with ease and also meet life obligations. You should have a budget for mortgage repayments, food, health care etc. If your budget is set, you can jump right in and close the deal on your home purchase.
Creating a budget helps you know if your current income is ready to take on more expenses. However, if you’re not there yet, you need to look for ways to grow your income. You can read my post on how to give your career a boost in 2021. Growth in your career means more income and your dream of owning your home achievable.