By: Elizabeth Porter
The home buying process can be stressful and overwhelming but with a little planning, it doesn’t have to be. No doubt, anyone you ask will agree homeownership is one of the most rewarding experiences and we’ve formulated our purchase process to be simple and homebuyer friendly.
Before you decide on a new home, it’s a good idea to put some thought into what you love about your current situation and what you hope to change. Knowing these will help keep you focused and confident in your decision making.
- What do I love most about my current situation?
Whether it’s the location, neighbors, floor plan, or payment….it’s always a good idea to understand what makes you tick and why you chose your current residence in the first place.
- What do I love least about my current situation?
This is one of the most important questions to ask. Maybe you’ve outgrown your place, maybe you’re tired of renting, or it could be the outdated finishes, stairs to climb, or location. It’s easy to get distracted by glitzy model homes but no matter how beautifully decorated they are, if they don’t solve your largest objection with your current situation, at some point you may second guess your decision.
- What monthly payment am I comfortable with?
What are you paying now? Do you have a little cash to stick in savings after making your monthly payment? Or, maybe you have a better job now and can invest more each month. Whatever that number is, zero in on it instead of just the house price.
While crunching the numbers, look at your personal spending. Cutting your Starbucks visits from 5 days a week to 2 can add $60-$80 a month and that can make the difference in which home you may be qualified for. If you own a used home now, there could be major hidden savings in categories like homeowners insurance, energy efficiency, and maintenance costs.
- What are my must-haves and what can I add later?
You can always change finishes like paint and countertops but it’s much more difficult to add square footage. Paint and flooring are two of the easiest things to change in a home so think big picture when comparing models.
- How much do I saved up for closing and how much will I need?
Renting? Look at your tax withholdings. You will have tax benefits with homeownership so you may be able to have less taken out now and create a little cash flow to save up for your down payment. New homes typically take 6-7 months to build so you’ll have time to save up while your home is under construction.
Engaged? Ask family members to contribute to a savings account for your new home instead of getting new sheets and toasters.
With Adams Homes, when you use an approved lender, your closing costs are paid but you’ll still need cash for setting up your escrow accounts and possibly your down payment. Your escrow accounts are the savings accounts your lender collects as part of your monthly payment so they can pay your taxes and insurance annually.
Once you know how much you need, formulate a monthly plan and stash that cash. Once you fall behind, it’s hard to catch up. Just six months of super saving can make the difference between renting and owning. You can do it! We can help.
Have questions about building a new home? We have answers! Contact us: www.AdamsHomes.com/Contact-Us
Check out these other related articles:
“5 tips to save for your home down payment”
“4 ways to improve your credit”
“10 Reason NOT to Buy a Used Home”
About Adams Homes:
Founded in 1991, Adams Homes is known as the premier home builder and is one of the largest privately-held home building companies in the southeast. Adams Homes has built more than 40,000 new homes since 1991 and builds in seven states including new homes for sale in Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, and Tennessee with corporate headquarters in Gulf Breeze, Florida.
Discover all Adams Homes’ communities, model homes and homes for sale on our website, www.AdamsHomes.com. We have new homes for sale perfect for the first-time buyer, move-up home buyer, who desires to upgrade to a more accommodating new home, and the empty nester who desires to downsize to a smaller home.
While you’re at our website, explore our mortgage calculator and obtain financing information.