Are you thinking it’s time to buy a home? I get it, there are so many things swirling around in your head. You’ve got money on your mind — mortgage rates and home prices — and let’s not forget about inventory still being a bit low. It’s a lot to juggle, right?
The housing market is obviously a thing to consider, but don’t forget about your goals and finances in all this. As NerdWallet has said, it’s not just about what’s going on out there, but also about your own money situation, what you want out of life, and if you’re really ready to be a homeowner.
Instead of trying to play the market, let’s focus on what you can actually control. I’ve got a few questions to help you figure out if it’s time to make your move. Let’s dive in!
1. Do You Have a Stable Job?
Before you jump into buying a house, think about how stable you feel in your employment. Buying a home is a big purchase — you’re promising to pay back a large amount of money over a long period of time. That’s a big commitment. If you have a reliable job and a steady stream of income, it can make you feel more at ease about making a large purchase.
2. Have You Figured Out What You Can Afford?
If you feel secure making a large purchase, it’s time to figure out what kind of place you can actually afford. It’s not just about your paycheck, though – you have to think about your spending habits, any debts you’re dealing with, and anything that would affect your lending application.
If you want to get a real handle on the numbers, your best bet is to chat with a lender you trust. They’ll give you the details on getting pre-approved and how much you can borrow. Plus, they’ll fill you in on current mortgage rates, roughly what you’d be paying each month, and all those closing costs that can sneak up on you.
Don’t forget about budgeting for other things that come with owning a home. Getting all this info helps you figure out if you’re actually ready to take the plunge into homeownership.
3. Do You Have an Emergency Fund?
Let’s talk about something that’s also important — having cash left over for those “just in case” moments. While it’s not the most fun thing to think about, it’s something you need to consider.
You don’t want to go all-in on a house and then be caught in a lurch if life throws you a curveball. You should have a little financial safety net that can cover a few months of living costs, including mortgage payments for those “oh crap” moments.
4. How Long Do You Plan To Live There?
Buying a house comes with some upfront costs and while you will build equity, it’s not an overnight process. If you’re thinking of moving again soon, you might wanna hit pause on that home purchase.
A recent report has set five years as a good timeframe for staying in a home. If the overall value of your home increases, even three years is a great mark to hit.
So, think about your game plan. Do you have a promotion coming up that might require you to relocate? Or maybe you will be moving closer to family soon. These are factors you will need to consider.
5. Above all else, the most important question to answer is: do you have a team of real estate professionals in place?
Finding a local agent you can trust and a decent lender is a great first step. These pros know their stuff and can walk you through all your options. They’ll help you figure out if you’re good to go or if you need to get a few more ducks in a row first.
Bottom Line
If you want to have a conversation about all the things you need to consider to determine if you’re ready to buy, let’s connect.
Anytime between “now” and “right now” is a good time to take action on shaping your best life, and that includes where you live. Let’s get the ball rolling on your next steps.
(702) 374-6807. Or drop me a line here.
