Purchasing a home is a huge investment, and one that quite rightly deserves a lot of contemplation. Before you take a look at real estate listings in Nashville, you first have to consider your current status, not only financially, but also physically and emotionally. Nashville homes don’t come cheap and since you can’t pay for it in one go; you must also consider the future and plan out the next few years carefully. So before you call a real estate agent in Nashville, here are a few things you need to look at.
Have Your Finances in Order Before Buying
- Current financial status – Most homes in Nashville require an upfront down payment. Depending on the terms that you agree, the initial costs can be quite extravagant. One thing you should never do is spend all your money on the initial costs. Instead, you should have money set aside for the initial costs and still have enough funds left over so you can live comfortably while being able to afford the repayments on your mortgage. If you have to cut necessities just so you can afford your home, then maybe you should consider waiting till your financial situation gets better. This is especially true in a post-Covid-19 world. Check this handy 5-point financial survival guide to see what you can do to improve your financial outlook post-Covid.
- Stable source of income – Unless you are filthy rich, chances are it would take years for you to be able to pay for the house in full. This is why your future financial status is actually more important than your present financial status. Ask yourself if your job pays steadily and if your current employment status is secured. Most people forfeit on their homes because play along the line, they either lose their jobs or develop financial problems. Even if you have a steady job, it's possible that something might crop up that renders you you unable to pay your monthly payments. Always have a backup plan, like savings and home loans to help you out just in case.
Aside from these main considerations, there are a lot of things you need to keep in mind when it comes to Nashville real estate. Always remember to plan ahead, but at the same time, you must also know how to adapt to any changes and deviations that happen along the way.
Qualities of a Prepared Home Buyer
When you buy a home you will be making a huge investment. For many, it will be the biggest investment they will ever make in their lives. So the question is, how do you know if you are ready to be a home buyer? Here are four traits that will make you a good home buyer.
You are Able to Conform to the Current Market
Are you the type of person who will complain about the price of every home you see? If so, you are not ready to be a home buyer. Good home buyers know how to conform to the marketplace. They take the time to do research and they keep their expectations in check.
You Have Enough Savings To Cover 3 Months Of A Mortgage Payment
Every mortgage lender wants their buyer to have at least 3 months of savings in place. You should not spend all the money you have just to purchase a new home. That is not a financially sound decision. You should always have some sort of emergency fund in place.
You Have the Resources to Maintain the Home
This is one of the main reasons you should not spend all you have just to get into a new home. You may be able to get the home, but will you be able to maintain it?
There are certain things you must do to keep your home looking good. Some of them include having the lawn cut, replacing filters and other minor repairs that tend to pop up every now and again. You want to make sure you can take care of these things when they pop up.
You have been Working for at Least Two Years
A good home buyer will have at least two consistent years of employment. Ideally, this would be with the same employer. Lenders want to know you have a stable employment history before they will loan you any money.
If you have all four of these traits, you may be ready to buy a home. If not, you may need to work on a few of them before you start searching.
Speaking With Neighbors Before Buying a Home
If you’ve been in the market for a home, you know that you can tell a lot about a potential neighborhood by driving through it. You can see the types of cars people drive, how well a lawn is manicured, if there is trash everywhere or if everything appears pristine and luxurious.
You can see if people are out talking to their neighbors, if kids are outside playing, and if the homes are smaller or all large and in the higher price range. The only problem with simply observing these factors by driving through is that you can’t get an insider’s point of view. The best thing you could do is to speak with neighbors to decide if that neighborhood is a good fit for your next move.
What Questions Should I Be Asking The Neighbors?
When you’ve decided to speak with the neighbors, start by asking the right questions. Any of these questions are a good place to start:
- Do you know why the seller is selling their home?
- Are you aware of anything odd about the house or your own?
- Is there anything the owner has complained to you regarding their home?
- Is the neighborhood typically quiet or have loud noise?
- How is the crime in this area?
- How long have you been living in this neighborhood?
- Do the neighbors all get along well?
- What’s your favorite part about this neighborhood?
These are good questions to start with. It opens the door for the neighbor to share additional information with you that you may have missed.
What Will The Neighbors Be Able To Tell Me?
Along with these types of questions, your neighbor will be able to tell you things like if they know the basement in that house recently flooded or if one of your nearby neighbors is a heavy smoker that smokes on the patio by your house.
Speaking with neighbors before buying a home is the best way to get the insider scoop and to find out about things you won’t hear about on the contract.
Speak With a Nashville Real Estate Agent
Purchasing a home is an extended process with a number of steps. For buyers hoping to have a smooth and successful home-buying process, reach out to a Nashville real estate agent today and let the experts ensure success in your home purchase.
The Ashton Real Estate Group of RE/MAX Advantage
The #1 Real Estate Team in Tennessee and #2 RE/MAX team in the World!