Making a big purchase, like buying a home, is exciting because of all the possibilities and hopes it brings. But it’s also a time when you might feel stress, worry, and uncertainty.
6 Questions to Ask When You Want to Know, “Should I Make a Big Purchase?”
We often tell ourselves scary stories about significant financial decisions like buying a house. If you believe these myths, you might feel afraid when you ask yourself, “Should I make a big purchase?” You may not feel ready, or like you’re doing something wrong if you can’t say “yes!” immediately.
Making a quick commitment isn’t a sign of success. No one wants to spend money they later regret, but it’s even worse to let fear keep you from making a choice that could improve your life. Here are six questions to help you decide:
1. “What do I know, and what do I need to learn?”
Research is an important part of any decision, even more so when purchasing a home. By staying up to date on market conditions, learning about different mortgage types, and being aware of your financial situation, you can build a case for your choice. The more information you gather, the better informed your decision will be and the more confident you’ll feel making it.
2. “What could be the benefits or risks?”
Writing down our fears can allow us to see them for what they truly are and conquer them. Grab a piece of paper or open a note on your mobile device and brainstorm the risks you fear about making a big purchase. Then, shift your perspective to the benefits this decision could bring and write those down too. No matter how big or small, they should all make their way onto the list.
Benefits of buying a home:
- Stable monthly payments
- Opportunity to build equity
- Opportunity for tax deductions
- Pride of ownership
- Stronger sense of community
- Improved stability
- Opportunity to build equity
- Greater privacy
- Improved credit score
- More control over your environment
- Greater protection against inflation
Risks of buying a home:
- High upfront costs
- Less mobility
- Maintenance costs
- Property taxes and other regular fees
- More exposure to the real estate market and interest rate changes
3. “What do I want, and what do I need?”
By identifying the details, it’ll be easier to draw the line between compromise and sticking to your guns when facing important decisions. When it comes to purchasing a home, knowing what you want and what you need can highlight areas where you can be flexible. For instance, you may need an accessible home and a finished basement for additional square footage. Homes with damp, dark basements at the bottom of creaky stairs don’t fit both lists, so you can feel confident saying “no.” Or, you may need a mortgage payment that fits your budget and want to work with financial professionals who know the community where you’re buying a home. In that case, you can get what you want and need when you work with a local lender.
4. “What would my life be like if I made this big purchase?”
Imagine you’ve decided to make a big purchase. What would you envision for your life? How does it feel to know that you made the right call? Now, flip the script and imagine a scenario when you decided to say no. Think through the thoughts and feelings you might experience. By clearly visualizing potential outcomes, we can safely work through any potential dangers and set an intention to make the most beneficial decision possible.
5. “What do my finances look like?”
When you can afford the big purchase item you want, the transaction becomes much less intimidating, and a healthy savings account can make all the difference. To get there, you need a savings plan to prepare your finances and your state of mind. For tons of helpful resources about starting and creating a savings plan, check the Greater Financial Education Center provided for free to anyone from Greater Nevada Credit Union.
6. “Who do I know who can help?”
Consulting with someone invested in you can help guide your actions and learning from the experience of others can make you feel more confident about your decision. When purchasing a home, experts who can help guide you through the process include real estate agents, mortgage lenders, home inspectors, and closing attorneys. These professionals can offer valuable insights and advice that will help make purchasing your first home more straightforward and less stressful.
Don’t be afraid to make a big purchase
There’s no shame in experiencing some apprehension when making a life-changing decision. But being prepared helps. Do your research, trust your gut, stick to your budget, and don’t be afraid to invest in something that will improve your quality of life. By considering all the factors involved, clearly defining your wants and needs, and consulting with experts along the way, you can calm your fears and make a choice that truly benefits your future.
Buying a home is undoubtedly one of the most significant purchases you can make and comes with unique fears. But finding the right mortgage lender shouldn’t add to that stress. With Greater Nevada Mortgage, you’ll have a lending team with knowledge, community connections, and the right tools to help. Contact us and one of our home loan experts will be happy to help answer your questions.