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3 Questions You Need To Ask Before Buying A Home

3 Questions You Need To Ask Before Buying A Home

If you are debating purchasing a home right now, you are probably getting a lot of advice. Though your friends and family have your best interests at heart, they may not be fully aware of your needs and what is currently happening in the real estate market.

Ask yourself the following three questions to help determine if now is a good time for you to buy in today’s market.

1. Why am I buying a home in the first place?

This is truly the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with money.

For example, a study by realtor.com found that “73% said buying in a good school district was “important” in their search.

This report supports a study by the Joint Center for Housing Studies at Harvard University which revealed that the top four reasons Americans buy a home have nothing to do with money. The actual reasons are:

  • A good place to raise children and provide them with a good education
  • A place where you and your family feel safe
  • More space for you and your family
  • Control of that space

What does owning a home mean to you? What non-financial benefits will you and your family gain from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.

2. Where are home values headed?

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), the median price of homes sold in February (the latest data available) was $249,500. This is up 3.6% from last year. The increase also marks the 84th consecutive month with year-over-year gains.

Looking at home prices year over year, CoreLogic is forecasting an increase of 4.6%. In other words, a home that costs you $250,000 today will cost you an additional $11,500 if you wait until next year to buy it.

What does that mean to you?

Simply put, with prices increasing, it may cost you more if you wait until next year to buy. Your down payment will also need to be higher in order to account for the higher price of the home you wish to buy.

3. Where are mortgage interest rates headed?

A buyer must be concerned about more than just prices. The ‘long-term cost’ of a home can be dramatically impacted by even a small increase in mortgage rates.

Freddie Mac, Fannie Mae, the Mortgage Bankers Association and NAR have all projected that mortgage interest rates will increase over the next twelve months, as you can see in the chart below:

3 Questions You Need To Ask Before Buying A Home | Keeping Current Matters

Bottom Line

Only you and your family will know for certain if now is the right time to purchase a home. Answering these questions will help you make that decision.

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13 replies
  1. Angela Waterford
    Angela Waterford says:

    I believe that asking myself why I am buying a home for sale is a rather important question that I am now able to answer. Thanks for clarifying that I should know where home values are headed so I can save money while buying a home. As long as the mortgage interests are favorable to my condition, I know that I should have no problems with buying a home from a real estate company. https://karlmillerteam.com/lynchburg-homes-for-sale/

  2. Dean Phillips
    Dean Phillips says:

    You made a great point when you said that you should determine if you are buying a home to provide a good place to raise children or to have more control of your own space. My wife and I are expecting our second child, so we want to move out of our apartment and into a house. It would be great if we could find a website that provides a wide variety of homes for us to look at and decide which is best for our needs. http://www.hensleyrealtycompany.com/about

  3. Angela Waterford
    Angela Waterford says:

    I think I’ve asked my brother why he wants to buy a home for sale in the first place so I’m trying to help him find one. Thanks for adding that before I contact any real estate companies, I should know where the home values are headed so he can afford to live in one before he lands on his next job to the state he wants to live in. This way, he’ll also be able to save money if the mortgage rates are headed to prices in his favor. https://www.talk-to-tanya.com/

  4. Sarah Packer
    Sarah Packer says:

    My husband and I are looking to buy a house, so I wanted some tips on choosing the perfect location and house. I didn’t know 73% of homebuyers said they made sure to look at surrounding school districts when deciding where to live. My husband and I aren’t planning on having children for a while, but it’s always nice to think far into the future when our kids start going to school and how convenient it has to be for them; I’ll keep that in mind as I look for houses on sale, thanks to this post! http://www.cannon1.com/featured-searches/single-family/

  5. Faylinn Byrne
    Faylinn Byrne says:

    I found it interesting when you talked about thinking if a specific place is good for raising children and for their education before buying a home there. My husband and I are trying to find a place where we can raise our three daughters and that is an important factor in our lives. We will make sure to talk to a specialist to help us with that choice.

  6. Jesse Ford
    Jesse Ford says:

    Thanks for mentioning that having adequate space to raise kids and a good place for education is one of the reasons for choosing a home. My wife and I are thinking of moving because we’re contemplating relocating to an area that has better schools for our children. I think it’s a good investment to hire a reputable real estate professional to help us find the best home and area if we decide to move.

  7. Charlotte Fleet
    Charlotte Fleet says:

    My husband and I want to buy our first home next summer. I appreciate you mentioning that the best reasons to buy a home include more space for your family and a place where you feel safe. We will keep this in mind while we search for the perfect home to move into.

  8. Rebecca Gardner
    Rebecca Gardner says:

    I’m glad you mentioned that a common reason to buy a home is to find a good place to raise kids. My sister and her husband want to find a home with a nice view for them and their three kids to enjoy. I’ll suggest they look for a home in a gated community to make sure it’ll be safe for their family!


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