It’s so exciting to look at homes to buy. We feel a thrill of delight when we think about potential owners looking at our new neighborhood at Magnolia Station at Cresleigh Ranch! However, it’s important to consider timing and life circumstances when you’re deciding to take this big step. Purchasing a house isn’t something to be done lightly. We’ve put together eight questions to help you decide if now is the right time for you to purchase a new home.
- Do I Have a Stable Source of Income?
Looking closely at your finances is a critical first step. A stable source of income is necessary to qualify for a mortgage loan. Lenders look for borrowers who have a consistent income that can cover the mortgage payment, property taxes, and other expenses. If you have a reliable source of income, you are one step closer to being ready to buy a house. Be honest and realistic about your finances when you talk to the experts – it’s in your best interest.
- What Is My Credit Score?
Your credit score is an important factor in determining your eligibility for a mortgage loan. A good credit score can help you secure a lower interest rate, which can save you thousands of dollars over the life of the loan. If your credit score is not where it needs to be, take some time to work on improving it before applying for a mortgage. There are lots of ways to begin this process, and it will help you in all aspects of your life.
- How Much Debt Do I Have?
As you take a look at your finances, check into all loans you currently hold. These include student debt, car loans, medical debt, credit cards, and more. Lenders will also look at your debt-to-income ratio when considering your mortgage application. If you have a lot of debt, it may be difficult to qualify for a loan. It is important to pay off as much debt as possible before applying for a mortgage.
- What Is My Savings Account Balance?
Having a healthy savings account balance is important when buying a house. You will need to have enough money for a down payment, closing costs, and other expenses associated with buying a home. It is recommended to have at least 20% of the purchase price saved up for a down payment. There are some programs to help first time buyers and others who qualify, but no matter what your down payment is, you’ll need some liquid cash to help you settle in.
- How Long Do I Plan to Stay in the House?
Buying a house is a long-term commitment. If you plan on moving in the next few years, it may not be worth it to buy a house. It can take several years to recoup the costs associated with buying a house. Of course, there are extenuating circumstances that sometimes affect this decision, but do your best to project ahead to your next five years.
- What Is the Real Estate Market Like in My Area?
The real estate market can have a big impact on your decision to buy a house. If the market is hot, prices may be high, and it may be difficult to find a good deal. If the market is slow, you may be able to get a better price on a house. Weigh the pros and cons of moving versus staying when it comes to the market.
- Can I Afford the Maintenance and Repairs?
Even after you’ve completed your mortgage paperwork, paid a down payment, and closed on your home, there will be further expenses. Owning a home comes with maintenance and repair costs. It is important to factor these expenses into your budget when considering buying a house. If you cannot afford the upkeep of a home, it may not be the right time to buy.
- Do I Have a Good Support System?
Make sure to ask questions and enlist the support of family and friends! Buying a house can be stressful. It is important to have a good support system in place to help you through the process. Talk to people you trust to ensure that you’re hiring a great leasing agent, broker, etc.
Keep Learning and Growing!
Now may be the perfect time to buy, or it might be smart to wait to purchase a home. Either way, it’s exciting to think, dream, and plan. We’re rooting for you!
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