How to Know When You’re Ready to Buy A Home
Are you ready to buy a home?
The question seems simple, but in reality, there are several different factors to consider before beginning the journey to homeownership. If you buy at the right time, the equity you’ll build and the freedom you’ll earn will be well worth it.
Whether you’re renting, living with family or upgrading to a different house, it’s important to be well prepared for the unique challenges and responsibilities that come with owning your own home.
To help you decide if buying a home is the right move for you, here are a few important thoughts to ponder.
Are Your Finances in Order?
There is no such thing as being too prepared for a purchase this big. First, use a mortgage calculator to determine things like how much house you can afford, what you can do to better qualify for a mortgage and which loan is better.
If you find that you’re finances are in order, it’s wise to meet with a mortgage lender to get pre-approved for a loan. This will ensure the smoothest possible home buying experience, and drastically speed up the process. Just be sure to gather all the financial documents required for the application in advance.
During the preapproval process, you may learn that your credit score is not where it needs to be to get the loan you desire. In that case, there are several steps you can take to either boost your credit score or apply for a government-backed FHA loan or other mortgage loan options .
Once you make it to closing, you’ll also need to properly budget for the sometimes overlooked costs of buying a home–including home inspection, appraisal, closing costs, property taxes and more.
Do You Know What Kind of Home You Want?
If you’re ready to buy a home, it’s good to know the type of home you’re looking for–whether that’s looking for an existing home, condo or fixer-upper, constructing a new house or buying a manufactured home.
Once you know the type of home you want, nail down must-haves such as neighborhood, square footage, number of bedrooms and bathrooms, yard size, architectural style, etc. Getting as specific as you possibly can may draw out the process, but it’s the right attitude for ensuring you’re buying the perfect home.
Are You Committed to the Area?
If you plan on settling down in a city and don’t have immediate plans to move, then buying a home is the right choice. But once you buy a home in a certain location, you’ll want the get know the community you’ll eventually call home.
Before deciding to buy, research different neighborhoods to determine which is right for you in both the short- and long-term. Consider crucial city factors like crime rate, school district, distance to work and walkability to ensure your home value will increase over time.
Are You Ready for Home Ownership?
Simply put, home ownership is unique. If you’ve been renting your whole life, you’ll no longer have a landlord you’ll need to call if there’s an issue with the property. Therefore, it’s important to consider your confidence in being able to manage the responsibilities that come with buying a home.
The experts at Ross Mortgage can help you decide if you’re ready to buy a home. Send us a message so we can help get you started on the journey to homeownership.
