Montana is going through a housing boom, there’s no doubt about that. More people are moving to Montana from out of state, resulting in home values rising.
If you’re a home buyer in Montana, you’re facing a lot of competition and great homes get bought up quickly. That’s why you must be diligent in your home buying search and not make common home buying mistakes.
Wait, home buying mistakes? What are those? While looking for houses in Kalispell can be exciting, there are many responsibilities involved. Making any of these 6 house shopping mistakes may turn your dream home shopping process into a nightmare experience.
We all dream of living in a huge mansion, or at least a very nice house. However, always know what you can afford.
There are many costs that come with owning a home. Beyond the mortgage payments and down payment, you also have to consider property taxes, insurance, possible HOA fees, water, utilities, maintenance, possible renovations, and more.
As a good rule of thumb, buy less than what you can afford. You can find many calculators online that can compare your income and credit score to certain factors such as home price and loan term. From here, you can start comparing house prices and find the best home in your price range.
If all of this is difficult for you, understand that less is always more. You don’t always need a lot of space in your home. Buy a home that fits your needs. For example, if you live alone, buy a two-bedroom home at the biggest.
The exception is if you plan on having a family. Because of this, it’s best to decide how many children you want to ensure you’re buying a home with the ideal amount of space.
Your debt impacts the home buying process more than you think. If you don’t plan wisely, you could be swimming in debt and will struggle financially.
You’ll struggle to pay your home expenses and too much debt impacts your credit score, which will also affect your mortgage payments. Many mortgage lenders won’t even consider you if your debt-to-income ratio is 43%.
Lots of people have debt, so don’t let that prevent you from buying a house. But you should compare how much you owe to what you earn, creating a realistic timeline of how long it will take for you to pay everything off.
If you have too much debt, focus on paying it down first before buying a house.
You’ll next want to consider where you live. Living in Kalispell is a great choice since it’s more affordable than many other cities in the US. However, Montana as a whole is a more affordable state. It’s still a good idea to understand the local laws and regulations, especially if you’re not from the area.
Other factors to consider when moving to the area are:
You’ll be surprised how many of these factors can affect the home buying process. For example, if you don’t have a car, living near a metropolitan area can increase your home price. In addition, living in an area prone to storms will increase your home insurance rates.
When shopping for a house, many people only consider the home’s style. That’s because many people want to prove their worth by the state of their home, whether to themselves or others.
At the end of the day, we all want a roof over our heads. But what happens when that roof comes crashing down? Or the foundation requires repairs. Or there’s a mold problem…(the list can go on and on).
You get the point. Don’t judge a book by its cover. The house may look beautiful but may come with expensive repairs in the future.
How do you ensure the home’s structure is safe to live in? Hire a home inspector to test the structural integrity of the home before you sign any papers.
Keep in mind, mortgage pre-approval is often not required, but it does offer a lot of benefits. You’ll be a more competitive buyer. This is especially recommended if you don’t have the best credit score. Referring to the last section, this is also an easy way to know what you can expect to pay.
Overall, a mortgage pre-approval tells sellers that you’re an easy buyer. There are no questions as to what you can afford.
What does a mortgage pre-approval entail? You’ll have to fill out a mortgage application that requires you to include your social security number, and the lender will do a hard credit check. From here, the lender will find ideal mortgages and your expected interest rate.
This brings us to our next point…
Shopping for a mortgage doesn’t sound like fun, right? But this is another essential step in the home buying process. That’s because all mortgages are different. Shopping for mortgages will help you uncover one that has the best rates and will help you save money.
When we discuss common house shopping mistakes, a common fault that people make is not buying the right house in the best neighborhood.
Don’t worry, we offer new homes for families with low maintenance. The homes feature the best and most modern amenities.
Our single-family homes are located in Kalispell, Montana and we offer different sizes as well as home plan options. Take a look at our homes and contact us today.