Knowing When to Buy Your First Home
Thinking it’s time to buy a home (like this one by MyHomeSource in Minneapolis) instead of renting? Our guest blogger, David Glenn shares some great insights to help you make the right decision.
Buying a home is a situation that requires proper emotional, physical, and financial commitment. For these reasons, it is important that you purchase and move into your first home at the right time. It is common to not be sure if you are ready to commit to purchasing your first home, as most homeowners need some guidance. Here are some circumstances that you must answer yes to in order to know that you are ready to purchase your first house.
You Know Your Desired Neighborhood and How Much Space You Need
If you are not sure if you may be expanding your family or if you don’t know whether you want to be a suburbanite or an urban dweller, you are still at the drawing board when it comes to housing. Before you think about getting a mortgage and going home shopping, consider where you would be happiest in the city. Along with knowing what kind of neighborhood you want, and how much space you need, you will need to know where you can afford to stay. Once you figure these out, you will have a blueprint of the exact type of property you need to hunt for when looking for your first home.
You Can Pay Your Housing Fees Each Month With No Issue
If you have issues with your income or if you are sometimes unable to come up with the money to pay rent, it can be a better idea to get stable and raise your income prior to purchasing a home. When you rent, the penalty for being late on rent can be a late fee from your landlord. If you are late on your mortgage, the penalty may be foreclosure. If you are able to pay your housing bills on time each month, you are likely ready to financially support a home mortgage.
You are Prepared for the Unexpected
Along with having money set aside for the down payment of your first home, you will also need to be prepared for the unexpected. If you purchase an older home, there is always the possibility that you will need to replace the roof or have foundation work performed. With a new house, there is something called a home warranty that will cover many things, but you will still need to perform regular maintenance on the home. Having a regular savings account as well as an emergency fund are necessary for the first time homeowners readiness.
You are Prepared to Live in Your Home Long term
Housing markets can change drastically and they can change quickly. For this reason, the worth of your house on the market can decrease and increase at different times. When you buy your first home, you need to be prepared to be in the home for years at a time. If there is a possibility that you will want to move, you could find yourself selling your home at a loss during a buyer’s market which can negatively impact your financial situation.
What all first time home buyers need without fail is preparation. Knowing precisely what type of home want, what mortgage amount you can afford, and being prepared for what might happen after closing means that you are ready to invest your time, energy, and money into real estate. Once you know that you are interested in purchasing a home, be sure you can answer all of the question this checklist positively, so that you are aware on where you are in the home buying process. Once all signs are a go, find a real estate agent who will help you find the first home of your dreams.