Is Now The Right Time To Buy A House?

Is Now The Right Time To Buy A House?

Purchasing a brand new home can be intimidating and stressful, just like it can be exciting and eventful. Bidding wars can bring forward intense emotions, especially if you’ve lost the house to another person, couple, or family. On the other hand, finally getting your dream home can be exhilarating with endless potential and possibilities. 

Nonetheless, signing up for a mortgage is a huge financial decision, and not something you should take lightly. So before taking a deep dive into the world of banking institutions, interest rates, and monthly payments, take a look at the advice we have to offer. See if you’re ready to start the home shopping process, and if you are, get a realtor involved! Ask yourself these questions.

Are you ready to settle down long term in one specific area?

Before you jump into the long term commitment of buying a house, you must first know whether or not you’re ready to settle down. Ask yourself these questions:

• Are you planning on switching jobs in the near future?

• Do you want to get married and have kids soon? 

• Are there any other big life changes you’re considering?

If you answered yes to any of these questions, take a step back and really think about the home you’re about to purchase. The last thing you want is to go all-in on property just to have to sell it a year later due to a job change or family growth. 

Do you know what kind of mortgage payment you want to narrow in on?

Before you even start to think about going house shopping, you should have some kind of target number in mind. Like, for example, can you afford a house that’s $350,000, or do you have to aim lower? 

Remember, the house itself is not the only expense you have to take into account. Things like property tax, homeowners’ association dues, insurance, and maintenance fees should be factored into the overall budget. Utilities should even be considered, like heat, gas, and electricity. 

If you need extra assistance, think about consulting a financial advisor to cover all of your bases and be sure that the price point you’re looking for is achievable. 

Do you have a down payment saved yet?

Applying for a mortgage through a bank or financial institution is part of the process, the other part is saving up enough money to contribute a down payment. The requirement is 3% of the overall cost of the house, so make sure you have that money in savings before you start getting your hopes up. 

When saving up for the down payment keep in mind that the more you put down up front, the less you’ll have to borrow. And, the cheaper your monthly mortgage payments will be.

How does your credit score look?

A good credit score will get you far in the mortgage game. Anything above a 670 is considered acceptable, but the higher score you have, the better chance you have for approval and lower interest rates. 

Keep an eye on Credit Karma before you go into house shopping. If your score is low or fair, improve it before applying for a mortgage. Just keep paying down your credit card bills and make sure you’re on time. 

What’s the best part about owning your own home? You have freedom to make it your own. Make it fancy or stick to a casual vibe, the choice is yours. Get into some super exciting things like at home movie theaters with av receivers, outdoor firepits, game rooms, art walls, and so much more.