In many areas across the country, new construction of properties is on the rise. Much of this is due to the rebounding of the economy over the past few years, which has led to increased income for many and a demand for quality housing in certain areas within American cities.
One area that is experiencing new construction of housing is downtown real estate. Listings in various cities with the title ?condos for sale? are becoming more common and single family homes are rebounding in many large urban areas, including Chicago.
With all of this real estate for sale, it?s little wonder that many are thinking about buying a new property to live in?whether that is a single family home, a condominium, or a larger house. Here are three tips before buying that property, equal parts preparation and real estate savvy.
Tip 1: Calculate Your Debt to Income Ratio
Your debt to income ratio is necessary for you to understand what you can and cannot afford. Generally speaking, the old standard lenders used stated that no more than 28% of your income be devoted to housing costs. All monthly debt obligations shouldn?t exceed 36% of your income. While this rule isn?t hard and fast, it gives you a barometer for what you can afford and you can?t. If the monthly cost of a mortgage pushes that number high enough that you?re uncomfortable, it?s probably time to reconsider things.
Tip 2: Complete an Inspection
It?s easy to fall in love with a home due to that lovely back patio or the fireplace that would be perfect on winter nights, and then to overlook some of the other issues that may be going on. An inspection gives you a complete picture of the home from the foundations to the roofing so that you can see how much it may not just cost up front, but later in maintenance costs. While the mortgage is the main part of your house payment, there are other costs as well.
Tip 3: Trust Your Gut
There are many factors that go into purchasing a home?too many to keep track of. All that minute details, all the different aspects of financing, how the purchase will play out three years from now?. It?s important to weigh the angles and decide which factors are most important for your decision. But when facing a decision with seemingly two options in fierce competition, trust your gut. Assuming you?ve done your homework, your instincts may be able to help you make a decision without debating it before the owner has moved onto another bidder.
New construction for homes is increasing in many areas across the country. There are many things to consider when purchasing a new home and these three tips will hopefully help.
