Becoming a homeowner means new obligations and responsibilities and buying your first home should never be taken lightly. There are many frequently asked questions about buying a home in general, ranging from “what is a home inspection?” to “how long does it take to buy a home?”
These types of questions are important as they can help you determine whether or not you’re ready to become a homeowner. If you’re trying to decide if homeownership is right for you, ask yourself these seven questions first. Do you think you’re ready to buy a house? Let’s find out!
1. Can you afford it? Before you ask yourself any other questions, this should most definitely be a top priority question because if you can’t afford a mortgage, then you will need to wait to become a homeowner.
To figure out if you can afford to buy a house, you will want to look at your overall financial situation. Ask yourself these following questions:
How much income do you have?
What is your job stability like?
How much savings do you have?
What is your credit history?
What amount are you comfortable paying each month? Make sure you look at all the costs involved.
What is your debt-to-income ratio?
When buying a house, you should analyze all of these factors to decide what you can truly afford.
2. Do you understand the process of buying a home? It’s crucial that you grasp the process of buying a home before you start the process. If you don’t understand how buying a home works, discuss it with an experienced Loan Officer at New American Funding to educate yourself on the process. By discussing this with a Loan Officer, they will be able to help you with any questions that you may have, so you can start looking for your dream home!
3. How’s your credit? Having good credit is crucial when you’re buying a home because if you have a low credit score, you could pay more each month in interest on the loan. Before applying for a mortgage, take steps to improve your credit score as much as possible. Pay as much debt as you can and fix any mistakes on your credit report that could be lowering your score.
4. How much are you comfortable paying per month? Before jumping into homeownership, you should look at how much you spend on other expenses each month to get an idea of how much you can afford to pay for your mortgage.
5. How long do you plan on staying in the area? When you purchase a home, you’re making a major commitment to the area where that home is located. Since you can’t just pick up the house and move it, you will have sell or rent the house if you decide to relocate. You should also consider other factors that may change your needs. If you’re planning on starting a family, you should check out the school district before buying in that area or if there’s potentially a reason you could relocate with your job, then you should reconsider your homebuying timeframe.
6. Do you have the time to care for the property? Buying a new home is an exciting time for anyone, but do you have the time to care for the property? Keep in mind that owning a home means you’re going to have maintenance and repairs. For instance, a huge lawn may look nice, but it also means a lot of grass will need to be mowed routinely. If you own a condo, you may not have a huge lawn or have one at all, so you won’t have to do as much yard work as you would if you owned a home. In addition, you will also need to keep the house clean, as well as devote a few hours each week to the general household upkeep and maintenance. Are you up for these tasks?
7. Are you ready to become a homeowner? While there are many benefits of owning a home, there are also responsibilities of being a homeowner, which is why it’s important to ask yourself if you’re ready. There will be new responsibilities and costs that you’ll be faced with when owning a home. However, if you budget your expenses appropriately, it’s doable!
So, are you ready to buy a home? Considering the above questions will go a long way to helping you make that decision. It’s critical that you’re comfortable with your choice before you jump into homeownership. When you’re ready to start the journey, contact New American Funding. We’re here to help guide the way!