Are You Ready to Be a Homeowner?
If you’ve been following the ups and downs of the house market in the last five years, you may be hesitant or uncertain about whether now is the time to purchase your first home. If you are wondering whether or not you are ready to be a homeowner right now, you are not alone. This is a large investment and not a decision to be taken lightly. However, homeownership is definitely worth the hassle and risk if you do happen to be ready.
Here are some things to take into consideration before you sign any dotted lines:
Credit
Unless you have cash in hand to buy your first home, your credit report is going to play a rather large role in your ability to obtain the right loan. Your FICO credit score will determine whether or not a bank will work with you at all on financing. If you’ve already been working on improving your score, you’re on the right track! If not, start today. A poor credit rating is the fastest path to disappointment for potential homebuyers.
Money
While there are deals that exist that require little to no down payment, all home purchases will require upfront costs. If you are able to put down payment upfront, you’ll find yourself in a better spot for negotiating and getting a good rate on your home loan. Some loans require as little as 5% down or as much as 20%. On top of that, you’ll need to expect additional payouts for closing costs, realtor fees, title fees, and home inspection costs. If none of that scared you off, because you’ve been saving your money for just this moment, you’re in a good place.
Maintenance
Often when you rent, the costs of home maintenance and repairs fall onto the homeowner. After you purchase your first home, those transfer to you. From your lawn to your appliances to your roof, when something happens to your home, you’ll have to handle it on your own. It’s a good idea to have a plan for seasonal maintenance needs, a list of numbers to call in an emergency, and savings designated for repairs and other needs. If this is something you are factoring into your income and expenses already, then homeownership is looking bright for you!
If you’ve reached this point and you are still excited and ready to move forward, it’s time to outline your budget, find a Realtor, define your home wants and needs, and begin talking to lenders. You are 100% ready to buy your first home!
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