Are You Ready to Buy?
March 11, 2021
Are You Ready to Buy?
To buy or not to buy, that is the question. Let us guess, you’ve spent your entire adult life going from rented apartment to rented apartment, and you’re starting to wonder if now is the time to bite the bullet and buy a house. Think of the space you’d have! And the yard! You could finally get that dog you’ve been thinking about! We get it. Buying a house sounds like a dream come true, but at the same time, it’s an enormous responsibility. There are three main checkboxes you want to tick before you can be confident that now is the right time for you to buy a house.
Maybe you’ve got the cash on hand to buy a home without taking out a loan. More likely though, you are hoping to make a down payment and get a 15 or 30-year mortgage. That’s a great plan, but it’s crucial to figure out if it’s feasible. Before applying for a loan, set aside some time to go through your finances and make sure you have a good understanding of your debt-to-income ratio (DTI) and your credit score. As everyone always says, knowledge is power, and knowing where you stand financially is the first step to being ready to buy a home!
Equally as important as understanding your finances is knowing your priorities. Yes, owning a house would be very fun and exciting, but it’s also a huge commitment. You have to have a serious talk with yourself, and if applicable, the person you’d be buying a home with. Do you want to settle down in one spot for a while? Most people recommend that anyone who buys a home should intend to live in it for at least five years. Real Estate isn’t a great short-term investment, so it’s best to be committed for a while. Make sure you are ready to take on the financial responsibility of monthly payments, knowing that it might mean spending a little less on “fun” activities. We want you to take these considerations seriously; we want you to make an educated decision!
The Housing Market
At the time this blog post is being written, the housing market is booming. While house prices are on a bit of a steady incline, mortgage rates are the lowest we’ve seen in 50 years. But, things change, and rates will vary depending on your location as well. Connect with a local real estate agent and figure out what the housing and mortgage markets are up to in your area. It’s good to know what kind of financial climate you’d be walking into.
With these three things in mind, you should be able to determine if now is the right time for you to buy a home. The answers you find will provide you with a sound basis of internal and external deliberation and consideration. Happy house hunting!