Are you ready for your dream house? The one with extra space, perfect neighborhood, and short commute? Or maybe you are tired of renting, want to start building your biggest investment and be the master of your domain? Here we look at the crucial questions you should be asking yourself if you are ready to take on homeownership.
Can You Realistically Afford to Buy A Home?
The biggest question most people ask is if they can afford it. A mortgage will undoubtedly be your biggest long term monthly expense that can last thirty years. The great news about this is rates have never been lower and in a lot of circumstances it can be cheaper than renting with a lot of benefits. A simple inventory of your monthly expenses will let you know if you can afford it and by how much.
Do you have savings for a down payment?
Once you’ve decided that the monthly income is doable and you can live comfortably with that monthly expense, you will want to look at down payment. This amount can vary from around 20-25% for an investment property and 3.5-10% for a primary residence. But there are special programs out there, with a VA loan you could be looking at a 0% down payment as well as other assistance programs. Contact your mortgage company or bank for further guidance.
What type of home do you need?
Great! you have the financial aspect taken care; you have the green light by your mortgage company now you have the task of deciding what type of house you need. If you are just beginning your career, single and will probably upgrade later, then a condo might be the best fit for you. However, if you are looking to upgrade now and need more space for children, then you may be moving away from urban centers and moving further out into a more suburban area.
Are you prepared to set down some roots?
Finally, its worth it to examine if you are emotionally prepared to invest into your community. Is the job you are in now going to sustain you for the long term? Do you see yourself making a career shift or going back to school, causing you to move relatively soon? Speak with your partner or spouse. What are their plans? Do you plan on having children, more children or none at all? All this needs to be taken into consideration when you are ready to make one of the biggest financial decisions you will have to make. Make sure the home passes inspection too! Buying a home, the right way, requires that you go through the vetting process too.
The great news is that you do not have to do this alone. There are real estate professionals out there that can help guide you through the process whether its buying or selling a home. Its always a good idea to reach out to a real estate consultant or a mortgage company to find out which program will be best suited for your lifestyle.
