A townhome is a good option for you if you are looking to buy a home and you live in an urban area where space and land are limited. And whether this is your first home purchase or your last home purchase, a townhome can provide you with a great lifestyle and community as well as give you pride in homeownership. Here are some recommendations to help you as you shop for a townhome.
Consider the Location
The location of a townhome is an important factor in your decision process, and you should look at its location in the community as well as nearby access to freeways, schools, and public transportation. However, the location of a townhome within the community can also be a big factor in your decision.
If, for example, a townhome is situated in the middle of a row of townhomes, you will have shared walls with two other neighbors. Townhomes are built with additional insulation between units to minimize the noise from nearby units. Listen for sounds from neighbors while you are in the unit. Otherwise, you can shop for a townhome that is on the end of a row, which means you will share a wall with only one neighbor. An end unit will also provide you with extra wall space for windows to let in natural light.
Check Into Financing
With a townhome purchase, you are buying the home and any property or yard with it, and you are very likely going to be paying all cash for its purchase. However, because a townhome is not a single-family home, the financing process can be a little bit different. Mortgage companies will look at a townhome as a property that has shared walls, and they can often look at the entire building and its ownership and rental statistics. Because a townhome is often a property that becomes a rental, a mortgage company may provide different terms than if you were buying a single-family home.
But check with your mortgage broker to get prequalified and to get your application process started. You can shop around for the most optimal rate and terms, so start a couple to few months before you want to buy. The loan application process will help you determine what you can expect for a mortgage payment and the interest rate and terms of your mortgage, which ultimately can determine which properties you can afford.
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