What should you not forget when buying a house?

When buying a house, don't forget critical financial prep (DTI, pre-approval), thorough inspections (foundation, roof, electrics, plumbing), location factors (commute, schools, safety), hidden costs (taxes, insurance, HOA, repairs), and future needs (space, layout, maintenance), along with essential immediate items like a good showerhead and basics for move-in day.

What are red flags 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. 

What is the 30/30/3 rule for home buying?

The 30/30/3 rule is a conservative guideline for home buying, suggesting you shouldn't spend over 30% of your gross monthly income on housing, save at least 30% of the home's price for a down payment and buffer, and keep the total home price to no more than 3 times your annual income to ensure financial comfort and resilience, preventing overextension in uncertain markets.
 

What adds $100,000 to your house?

To add $100k to your home's value, focus on high-impact, buyer-appealing projects like creating a primary suite, expanding square footage (basement/attic conversion, addition), and major kitchen/bathroom upgrades, while also boosting curb appeal with landscaping, new front door, and lighting. Opening up floor plans, improving energy efficiency (HVAC, insulation), and updating finishes (flooring, countertops) also significantly add value and appeal to modern buyers. 

What are the most overlooked home needs?

10 Overlooked Home Maintenance Tasks That Could Save You Trouble

• Cleaning Gutters. ...
• Replacing HVAC Filters. ...
• Checking for Roof Leaks. ...
• Flushing Your Water Heater. ...
• Testing Smoke and Carbon Monoxide Detectors. ...
• Cleaning Dryer Vents. ...
• Sealing Cracks and Gaps. ...
• Inspecting the Foundation.

Don't Make These First-Time Buyer Mistakes

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 salary do you need for a $400,000 house?

To afford a $400k house, you generally need an annual income between $90,000 and $135,000, though this varies by interest rates, down payment, and debt, with lenders often looking for housing costs under 28% of your gross income (28/36 rule). A lower income might suffice with a large down payment or higher interest, while more debt requires a higher income, potentially pushing the need to over $100k-$120k+ annually. 

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.

How much 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. 

What is the hardest month to sell a house?

The hardest months to sell a house are typically January, December, and October, due to cold weather, holiday distractions, post-holiday financial fatigue, and people waiting for spring for school schedules. January often sees the lowest activity, longest time on market, and lower prices, making winter the slowest season overall. 

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. 

How much do I have to make to qualify for a $500,000 mortgage?

To afford a $500,000 house, you typically need an annual income between $125,000 to $160,000, which translates to a gross monthly income of approximately $10,417 to $13,333, depending on your financial situation, down payment, credit score, and current market conditions.

When not to buy a house?

It can be a good time to buy a house if you have money for a down payment and closing costs, can afford all the expenses, have good credit and low debt. However, you may want to wait if you have poor credit, lots of debt or unstable income.

What are 5 red flag symptoms?

Here's a list of seven symptoms that call for attention.

• Unexplained weight loss. Losing weight without trying may be a sign of a health problem. ...
• Persistent or high fever. ...
• Shortness of breath. ...
• Unexplained changes in bowel habits. ...
• Confusion or personality changes. ...
• Feeling full after eating very little. ...
• Flashes of light.

Can I afford a 400k house making 70k a year?

It's unlikely you can comfortably afford a $400k house on a $70k salary because standard affordability rules (like the 28/36 rule) suggest a budget closer to $210k-$300k, depending on factors like your down payment, credit, and existing debts. A $400k home would likely push your total monthly housing costs (mortgage, taxes, insurance) above the recommended 28-30% of your gross income, potentially leaving you "house broke". 

How much can you borrow on a mortgage?

How much you can borrow for a mortgage depends on your income, debts, credit, and down payment, but lenders often use the 28/36 Rule: housing costs (PITI) under 28% of gross monthly income, and total debt under 36%. A rough estimate is 3-5x your annual income, or sometimes up to 4.5x, but calculators using your specific income, debts (student loans, car loans, credit cards), and estimated property taxes/insurance provide a clearer picture. Getting a mortgage pre-approval gives the most accurate lender-backed figure. 

Is 74k a year good?

Yes, $74k a year is generally considered a good salary, above the U.S. median income, allowing for comfort in many areas, but its real value depends heavily on your location, lifestyle, and expenses like rent or debt, as it might not cover a median home in high-cost cities but is often enough for a decent life. For many, it's enough for rent, savings, and discretionary spending, placing it in the comfortable middle-class range, though some feel it's not enough for luxury or homeownership in expensive areas. 

What is the 3 3 3 rule in real estate?

Three months of savings, three months of mortgage reserves, and three property comparisons give you confidence and flexibility. When you follow the 3-3-3 rule, you're not just buying land, you're building a plan that could protect your investment, your lifestyle, and your financial health.

What hurts property value?

Putting off maintenance or neglecting to do it at all can lead to lower property values because they can lead to expensive repairs later. A small leak in the plumbing may not seem like a big deal at first, but over time it can cause structural damage, high water bills, or mold.

Should I buy a house in 2025 or wait until 2026?

Mortgage Rates Are Stabilizing

After a few years of rate volatility, mortgage rates have mostly leveled out, hovering in the mid-6% range through most of 2025. While buyers hope rates will drop further, most experts predict only slight changes in early 2026—meaning waiting may not result in significant savings.

What is a good credit score to buy a house?

640-699: Qualified for a home loan, but not the best mortgage rates available. 700-749: Strong borrower with access to good interest rates and more home loan options. 750-850: Excellent credit! You'll qualify for the best interest rates and loan terms.

How does income affect loan approval?

Income is crucial for loan approval as lenders assess your ability to repay, primarily through your Debt-to-Income (DTI) ratio, which compares monthly debt to gross income, favoring lower ratios (e.g., below 36-43%). They also check for stable income sources, requiring a history (often 2 years) of consistent employment, regular paychecks, and verifiable income streams (like bonuses or overtime averaged over 12+ months) to ensure financial stability, with job changes within the same field and increasing pay being favorable. 

What are the pros and cons of a 30-year mortgage?

Pros and Cons of a 30-Year Fixed-Rate Mortgage. A longer repayment period qualifies buyers for lower payments or a pricier home. But the rate will be higher and you'll pay more interest over the life of the loan.