The vision boards have been assembled, the paint and fabric swatches selected, the measurements for your dream living-room set fully memorized. What more could there be to buying a house? We kid, of course—before you get to the decorating stage (aka the fun part), there are a bunch of Very Adult Things to consider with your perma-roomie (ahem, partner) before making this life-changing investment.
And we're not just talking about carpet versus hardwood floors or mid-century modern versus contemporary architecture. With the help of State Farm®, you can work with an agent to select coverage to fit your needs. We've outlined five essential questions to consider together before embarking on homeownership goals.
1. Is this a forever home, or a "for now" home?
Your love is limitless, but your time in your first house doesn't have to be. A starter home is a smart way to build equity (in other words, the value of the percentage of your property you own after each mortgage payment) with a smaller budget. It just means you'll have to make some concessions regarding amenities and location. For this option, explore nearby home comps so you have a good idea of resale value in around five years' time, and be prepared to make some upgrades that'll add worth.
Conversely, you may have a large down payment saved and plans to indefinitely stay in one area—but this also means more than just finding a house that's got everything on your immediate list. Have a heart-to-heart about what sort of area you want to live in (think: suburban versus city), then do a deep dive on the neighborhood in question, factoring in local dining and grocery options, crime rates, property taxes, potential HOA fees, and work commutes.
2. Do we plan on having kids?
Carve out space for your expanding family before you enter your parenting era. That means considering things like whether your home has a bedroom for everyone and you're near parks or the backyard is big enough to accommodate your energetic littles (yes, fur babies count too). It's also key to check that you're within close proximity of a good school district, and you'll be near extended family (because free babysitting? Priceless).
3. Which homeowners insurance should we get?
This is one of the biggest purchases you'll ever make (no pressure), so you'll want to make sure you have the coverage you need. State Farm's wide variety of coverage options will make you feel secure the moment those house keys hit your hand. Plus, you can bundle your home insurance with life and car insurance. Plus, little things like installing smoke detectors and burglar alarms or fixing your roof may offer you lower-cost options and discounts. And if there's ever an issue or complication, you can get 24/7 support via call, text, or the State Farm app. Another reason this is important to consider? Many lenders won't give you a mortgage until you get home insurance.
4. What is our purchase-price budget range?
Sit down together—preferably with cocktails or dessert as motivation—and outline your incomes, combined debt, and credit scores, until you land on both a mortgage and a down-payment calculation that feels comfortable (experts advise spending no more than 28 percent of your gross monthly income on your mortgage, property taxes, and home insurance). Research pre-approval and interest rates so you know what you'll qualify for, and don't forget to add closing costs to the price of any potential home purchase.
Other long-term factors that can affect your budget: expenses like those property taxes, as well as utilities and potential repairs (the roof, appliances, the foundation, electrical, etc.). We love the romantic notion of renovating a historical fixer-upper, but we also respect the self-awareness of realizing your bank accounts are more attuned to a turnkey option. As a team, you'll figure out what's best.
5. At what age do we hope to retire and become full-time cruisers?
If the tiny-umbrella-drink life is on your ocean-lined horizon, take into account your ideal retirement year when it comes to mortgage-payment length, and futurecast your home's neighborhood for potential change in the ensuing years before you sell it. Factors like expanding walkability, growth of nearby shopping and entertainment options, and the quality of current and new home builds can mean the difference between selling for a premium-suite cruise-ship experience or a standard-cabin one.
Got all that? Talked it out? Great, now you can reward yourselves with a few open-house tours, capped off by a trip to your favorite home-furnishings store. Go ahead and enjoy, knowing your valuables will be covered.
