Your first home is an exciting and sometimes overwhelming purchase. A great agent can help you through the actual process of buying your home, but there are many things to consider before you make the decision to start looking for your first home. If you think you might be ready to buy a house, consider the following questions to help you determine whether you are ready.
Can you afford it? A general rule is that you should have about 20% to put down on a home. If not, you’ll need to be comfortable paying PMI (Private Mortgage Insurance) in addition to your monthly mortgage payment. Beyond the down payment and mortgage, you’ll also want to consider the costs of ownership and improvement. The average buyer spends almost $10,000 on additional expenses after buying a new house. If you’re prepared for these expenses, it’s much easier to budget for them as you’re saving for your first house.
How is your credit? In general, the better your credit score, the lower your mortgage rate will be. The best rates are available to people with a credit score of at least 760.
How long do you plan to stay here? Buying a home is a good investment if you plan to stick around a little while. Buyers who live in their homes longer tend to fare better on resale than those who live in their house for less than three years. If you’re planning be in the area for a while, now is a great time to buy your first home.
Do you have time for maintenance? Home ownership requires care and maintenance, both inside and outside your house. If you’ve never had a yard before, you might be surprised by how much time it takes to trim your hedges and mow the lawn. Even if you outsource large projects to a professional, you’ll be responsible for finding those professionals and for minor projects that do not require a pro. If you make the time to care for your house, you’ll be happy with the results that you see as you complete each project.
If you think you're ready to buy your first house, we’d love to hear from you. We have amazing buyers agents who will work with you through every step of the home buying process.
Enjoy the Adventure!