Top 5 Signs Youâ€™re Ready to Buy a Home11/18/2015
- Every rent payment you make, you visualize how that money would be better spent paying for your own mortgage rather than someone else’s. It’s logical: if you’ve got good credit and a stable job with an income that already helps sustain your current rent amount and lifestyle, it’s only natural to want to own something of your own.
- You’ve downloaded a mortgage/amortization calculator to your phone. There’s basically only one reason why anyone NOT in the business would have one of these on their phone!
- You’ve been bitten by the home ownership bug. The idea of finally having a back yard for the dog your landlord would never have ok’d, or a new place of your own to start putting to use all the DYI ideas you’ve seen on HGTV and Pinterest, it’s all enough to get anyone excited to go buy a home! This is called personal freedom, and if you’re in this sweet spot where you’ve got good credit, a solid job and your rent payment is in line with what your new total payment would be, it’s a no brainer to start checking into what you can afford. All of these thoughts have a way of leading you toward this next step in your life. The trick is to be knowledgeable and be prepared.
- You’ve bookmarked Zillow, Trulia, Realtor.com, and forsalebyowner.com on your browser and the apps are on your phone’s home screen right next to Facebook and Twitter.
- Rates are still low, and so are home prices, but possibly not for long! For the last several years there’s been tons of talk about how the rates are the lowest in history and that home prices are still low or stagnant. Well, this may still be true to some degree, but since the housing market in 2015 saw a nice shift upward in home sales and prices, along with good news about the recent trends in employment, it is reasonable to assume that these sleepier years in real estate are starting to wake up, and they’re likely waking the rates and home prices up with them! If you’ve been thinking about it, there may be no better time than now to start exploring a home purchase as a goal for 2016.
- People you know are starting to see their equity grow again, and it’s making you consider that now may be your most opportune time to invest for yourself! If you buy now when prices are starting to finally increase, you’ll grab a deal that will likely secure you some equity of your own while you live there! This is one of the things that excite first time homebuyers to go for it!
Do these 5, rather 6 ideas sound like you? Good! Then read on because I’ve got some helpful words of wisdom I’d like to pass along:
Get pre-approved with a reputable lender. You can shop rates, but it doesn’t end with the best rate. You want to make sure you’re getting the best deal, which includes someone who can professionally and promptly handle the process for you while providing correct information and expedient solutions to any hiccups along the way. Sure, the interest rate is a big factor, just as big as the purchase price of a home, but neither are the only components involved with making a purchase. I suggest getting a pre-approval as early as you can, well before you start searching for homes. What is a pre-approval? It’s a preliminary and typically informal approval for a loan based on the income, asset and credit information you provide and in some cases back up with supporting documentation. A serious buyer needs to be armed with one of these before they even start looking at houses with an agent. You’ll be thankful to have a pre-approval letter anyway: it clearly and simply lets you know what price range you can realistically afford, plus it proves you can qualify for a mortgage! It will certainly make you more confident in your home search.
Ask friends and family for referrals for a good agent but don’t be afraid to talk to several agents you know (or don’t know) to find the one you feel the most comfortable with. Just because your husband’s Aunt is an agent, doesn’t mean she’s the right one for you. You want someone who knows what they’re doing, but just as important, you need someone who has your best interests at the forefront.
Be realistic- more often than not, the ideal house is out of everyone’s price range, and that’s because our tastes have a tendency to outweigh our budget. That doesn’t mean you can’t find a great house within your means. It’s always better to search conservatively so that you can make sure you leave enough room in your budget for the maintenance of your home and for all the entertaining you plan on doing. You don’t want to buy a big fixer-upper only to not have the cash to do any of the fixer-upper -ing!
So tell me, what's your motivation to buy a home?