Before you dive in to completing the biggest purchase of your life, there are questions you need to ask yourself.
Does it make sense to buy?
There is always a debate on renting vs. buying. The best way to decide this for yourself is to calculate how many years it will take before the cost of buying a home equals the cost of renting. You want to find the breakeven point for your location. If you want to stay in your home for longer than the breakeven point, buying makes the most financial sense. If you are going to move earlier, renting may be for you.
How are my financials going to handle this?
Without a doubt, buying a home takes a toll on your financials. You need to be extremely prepared and aware of the costs that go into it! You will need to account for a down payment and monthly mortgage payments.
The down payment is going to be the sum of money you will pay upfront for your home. This proves to lenders that you are serious about this purchase. Typically, you will hear 20% is recommended but it can go as low as 3%. The more you put down, the better your mortgage payment will be.
The mortgage payments you will make monthly will go to the loan and interest that were taken out to purchase the home. You also will need to pay for homeowners insurance as well as property taxes. To get the best mortgage rate, make sure you have great credit and check all your options!
Am I ready for this task?
A lot of commitment is coming your way! Are you ready to make more decisions than ever before? What type of paint do you buy, what furniture looks best in which room? Is the neighborhood really where you want to be for years? This is about to be a huge investment and a lot comes with that! You have to be emotionally and even physically ready to take this on. Your home will need maintenance and repair and you will not have a landlord for help this time! Buying a house can be such a daunting, but fun task. If you went through these questions and know you are ready, contact us today! We would love to go through this process with you.