I am typically an advocate of buying a home. What could go wrong?....Well there are a few things to consider before purchasing. Below are 6 questions to ask yourself:
Can I afford to buy a house?
This is a typical and pragmatic question when it comes to buying a home, especially for the first time. Your salary or take home pay will determine if you are able to get a loan. Which most homes in the nation are bought with a loan. Here are some things to consider about affordability and home buying:
For those of you that are renting, it is very likely that if you can afford your rent you can afford a home loan. This is not an absolute thing, but it can be an indicator.
Fees that you will need to pay upfront that will not be included in the home loan are the earnest check and the loan down payment.
There are a few additional fees that come with the sale that may be negotiated such as - home inspection, termite inspection, attorney fee, broker fee, home warranty.
A good Real Estate Broker can help you determine if you have enough savings to pay upfront costs such as the one's listed above.
Is my credit score good enough?
Your credit score may not be good enough, but this is something you can work on and really you want to work on this before taking out a loan. Your Loan Officer may even be able to help you with this. When purchasing my first home, this is what my Loan Officer did. While my credit score wasn’t terrible…(get out of my business), my Loan Officer guided me on fixing some outstanding items and ultimately I got a great home interest rate on my home loan.
Will I be moving soon?
This is always something to consider when buying a home….are you ready to settle down for a minute. But remember that settling down does not have to mean I plan to be here for some years. In fact, I have a good friend that bought a house and sold it within a year because she needed to take an outstanding job offer in a different state. My only hesitancy with this is the selling process can take some time. Having to manage a sell while out of state and covering the expenses of two homes can be challenging. Nevertheless, all of this is still doable. After all, if the market is hot…it may not take that long to sell the house.
Am I ready to maintain a home?
Yes, you are ready to maintain a home. Maintaining a home is just about doing it. Like
Nike says - Just Do It. The key is to not let your list of things to-do get too long when
maintaining your home. Try not to procrastinate on things. If you know that the faucet is
dripping constantly, don’t wait to call the plumber.
I know that money can be an issue when it comes to maintaining a home. You will want
to keep a savings for maintaining your home. Kind of like you should do for your car.
Things will come up unexpectedly. You will need to tap into savings for some things.
Just saving $25 every month for these types of repairs could make a difference.
Should I wait until I’m married?
No, not necessarily. I don’t know your relationship status but if you are single with no boo in sight then no we are not going to hang important financial dreams on finding a mate. If you are positioned financially to be able to do it as a single person, I say go for it. You are simply building wealth. And if Mr. or Mrs. Right does come along you are coming to the table with additional wealth. We can let the attorneys figure out the details.
Am I ready to live by myself - I am single with no kids.
This is typically for my young adults who are still living with family but have a decent job. I would encourage you to not think so much about yourself when it comes to this transaction. Buying a home can be an entry door into generational wealth. Just because you buy a house doesn’t mean you have to stay there every day. Not only are you buying a home, you are also probably buying land with the home if this purchase is being made in Mississippi. You are simply increasing your assets with this purchase. I think your parents, grandparents, or auntie and them would be proud.
