What matters most when buying a house?

The most important factors when buying a house are Location (commute, schools, amenities, safety), Price (affordability, future value), and the Home's Condition (layout, age of big systems, potential for maintenance), all balanced with your personal lifestyle needs, such as space, style, and long-term goals. Prioritizing these elements ensures your home is a good fit for daily living and a sound financial investment.

What are the most important things to consider when buying a house?

10 factors to consider when buying a house

• Price. For many prospective home buyers, a home's purchase price is their biggest concern. ...
• Location. Where you buy a home will have a tremendous impact on your day-to-day life. ...
• House size. ...
• Property taxes. ...
• Homeowners association.
• Amenities. ...
• Future resale value. ...
• Home condition and age.

What is the biggest red flag in a home inspection?

The biggest red flags in a home inspection are foundation cracks (especially horizontal or wider than 1/4 inch), structural issues like sagging floors or stuck doors, outdated electrical systems with aluminum wiring, old plumbing with galvanized pipes or water damage, roof problems like missing shingles or sagging, ...

What is the 3-3-3 rule in real estate?

The "3-3-3 rule" in real estate isn't one single rule but refers to different guidelines for buyers, agents, and investors, often focusing on financial readiness or marketing habits, such as having 3 months' savings/mortgage cushion, evaluating 3 properties/years, or agents making 3 calls/notes/resources monthly to stay connected without being pushy. Another popular version is the 30/30/3 rule for buyers: less than 30% of income for mortgage, 30% of home value for down payment/closing costs, and max home price 3x annual income. 

What are the 3 C's of home buying?

These three essential factors — Credit, Capacity, and Collateral — play a pivotal role in determining your eligibility and terms for a mortgage.

Deal Breakers When Buying a Home | Ask This Old House

What salary do you need for a $400000 mortgage?

To comfortably afford a 400k mortgage, you'll likely need an annual income between $100,000 to $125,000, depending on your specific financial situation and the terms of your mortgage.

What is the 3 7 3 rule for a mortgage?

The correct answer option was, "B!" TRID establishes the 3/7/3 Rule by defining how long after an application the LE needs to be issued (3 days), the amount of time that must elapse from when the LE is issued to when the loan may close (7 days), and how far in advance of closing the CD must be issued (3 days).

What is a red flag when buying a house?

Red flags when buying a house include visible issues like foundation cracks, water stains, mold, musty smells, poor DIY renovations (crooked cabinets, cheap finishes), and neglected yard, signaling hidden problems with structure, drainage, or maintenance, plus neighborhood issues (many "For Sale" signs, busy roads) or unclear seller reasons for moving, all pointing to potential costly repairs or future headaches. Always get a professional inspection to uncover issues with the roof, electrical, plumbing, and structural integrity before buying. 

How much of a house can I afford if I make $70,000 a year?

With a $70,000 salary, you can generally afford a house between $210,000 and $350,000, but your actual budget depends heavily on your credit score, existing debts, down payment, and current mortgage rates, with lenders often following the 28/36 rule (housing costs under 28% of gross income, total debt under 36%). A good starting point is keeping your total monthly housing payment (PITI) under $1,633, but a lower Debt-to-Income (DTI) ratio and larger down payment increase your buying power. 

How long will $500,000 last using the 4% rule?

Your $500,000 can give you about $20,000 each year using the 4% rule, and it could last over 30 years. The Bureau of Labor Statistics shows retirees spend around $54,000 yearly. Smart investments can make your savings last longer.

What not to do before buying a house?

Before buying a house, don't make big purchases (cars, furniture), open new credit, close old accounts, change jobs, move large amounts of cash, or miss payments, as these actions can tank your credit, reduce your loan amount, or even derail your mortgage approval by signaling financial instability to lenders, who want to see a consistent, stable financial picture.
 

What is the first thing an inspector wants to see?

In most inspections (like OSHA or workplace safety), the first thing an inspector wants to see are your records and paperwork, such as safety plans, training logs, compliance documents, and incident reports, to get an overview of operations before looking at physical items. For a home inspection, it's often the roof, foundation, and HVAC/electrical systems, as these are major structural/safety components, though the inspector starts by getting access to the property and turning on systems like heat/AC. 

What would make a house fail a home inspection?

Top reasons homes fail inspection

Structural problems could include: Foundation flaws such as cracks, troublesome tree roots and uneven settling or lack of steel reinforcement. An aging, damaged or deteriorating roof. Missing flashing or shingles.

What to look for in a house checklist?

A house viewing checklist covers the exterior (roof, foundation, curb appeal), interior systems (electrical, plumbing, HVAC, insulation, windows), room specifics (light, size, storage, outlets), kitchen/baths (appliances, fixtures, water pressure, ventilation), and neighborhood (amenities, noise, traffic) to identify major issues like damp, mold, subsidence, or outdated systems, while noting cosmetic fixes versus costly repairs to assess overall value and fit for your needs. 

What are the hidden costs of buying a home?

Hidden costs of buying a house go beyond the down payment, including hefty closing costs (2-6% of price for fees like origination, title, appraisal), upfront cash for earnest money, new furniture/appliances, immediate repairs/upgrades (HVAC, roof, paint), and ongoing higher homeowners insurance (especially in disaster zones), plus property taxes and HOA fees that can spike unexpectedly.
 

How do I negotiate the price of a house?

Remember, a home's listing price is often just a starting point for negotiations. To determine an offer, consider the home's condition, the cost of any necessary repairs or renovations, and how these factors compare to other homes in the area.

What income do you need for a $400,000 mortgage?

To afford a $400k mortgage, you generally need an annual income between $100,000 to $130,000+, depending heavily on your down payment, interest rate, and existing debts, with lenders often using the 28/36 rule (housing costs < 28% of gross income, total debt < 36%). A larger down payment (like 20%) lowers your required income to around $100k, while no down payment could push it over $120k, with current rates and taxes influencing the exact figure. 

How much can I borrow from a mortgage?

You can borrow a mortgage based on your income, debts, and credit, generally aiming for total monthly housing costs (PITI) under 28% of your gross income and all debts under 36-43%, though lenders use specific ratios like 36/43 (housing/total debt) and look at factors like income, credit, and down payment; calculators offer estimates, but getting a pre-approval from a lender gives the most accurate figure. 

Can I buy a 400k house with 70K salary?

Buying a $400k house on a $70k salary is very challenging and likely not feasible for most, as typical affordability is $260k-$360k; you'd need a substantial down payment, excellent credit, and minimal debt to even approach that price, as lenders use the 28/36 rule (housing costs under 28% of gross income, total debt under 36%) and a $400k home usually pushes payments too high for this income. 

What are the 4 C's when buying a home?

Lenders consider four criteria, also known as the 4 C's: Capacity, Capital, Credit, and Collateral. What is your ability to pay back your mortgage?

What devalues a house the most?

5 things to avoid that can devalue your home

1. Rough renovations. Renovation projects are likely the first thing that comes to mind when people think about increasing equity. ...
2. Unusual renovations. ...
3. Extreme customization. ...
4. An untidy exterior. ...
5. Skipped daily upkeep.

What is the 3 7 3 rule in mortgage?

What is the 3-7-3 Rule? Within 3 business days of your completed loan application, your lender must provide initial disclosures. This includes the Loan Estimate (LE), which outlines your estimated loan terms, interest rate, closing costs, and monthly payment breakdown.

What is Dave Ramsey's mortgage rule?

Dave Ramsey's core mortgage rule is to keep your total monthly housing payment (PITI: Principal, Interest, Taxes, Insurance + HOA/PMI) under 25% of your monthly take-home (net) pay, ideally with a 15-year fixed-rate mortgage, aiming for a larger down payment (20%+) to avoid PMI and pay debt faster, focusing on financial freedom over decades-long debt.
 

Will mortgage rates ever be 3% again?

It's highly unlikely mortgage rates will return to 3% anytime soon, with most experts expecting rates to stay in the 5-7% range for the near future, potentially dropping slightly but not drastically, unless another major economic crisis (like a deep recession or global pandemic) occurs, which could force rates down significantly, notes Experian and Realtor.com. The ultra-low 3% rates were a temporary response to the pandemic, and current forecasts predict rates to ease gradually, not plummet, says Yahoo Finance. 

Why do you have to wait 3 days after signing a closing disclosure?

By federal law, the lender must give a five-page closing disclosure form to the borrower three days before closing. This allows them to review it and make certain that nothing has changed substantially, from the loan estimate they received when they applied for the mortgage.