When deciding if you’re prepared to buy a house, several factors play a role. Keep reading to find out what they are.
Rather than trying to time the housing market perfectly when you buy, it’s wise to consider your own financial stability and life situation. Here are three key questions that will help you gain clarity about your readiness for homeownership.
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Is Your Employment Stable?
Obviously, a reliable job and income are essential before committing to a mortgage. Once you sign documents for a loan, you’re locked in — and must pay back that money no matter what. However, knowing you have stable employment can help put your mind at ease.
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Have You Determined Your Budget?
If not, it’s imperative to consult a trusted lender. He or she will help you understand the pre-approval process, potential monthly payments, and assistance options. They will also let you know about down payment requirements. Contrary to popular belief, you don’t necessarily need to put 20% down. In fact, many mortgages require no more than 3% to 5% of the purchase price.
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What Are Your Long-Term Plans?
Consider how long you intend to stay in the home you’re moving into. Buying a house makes sense if you plan to remain for at least three years. This allows you to recoup your investment. If you only plan to stay for a year or so, you could wind up paying more in closing costs than you’d earn in proceeds if you sell.
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In summary, think about your future and make an informed decision. One of the most important things you can do when buying a home is partner with an outstanding lender and agent. To team up with a seasoned lender, call Allycyn Bennett of Sandstone Financial at 949.717.7290. For home buying expertise, contact your local real estate specialist today at SurterreProperties.com.
