Buying a home is a tedious task. Since it is a huge investment, right from saving money to hiring a real estate agent for buying a property, everything should be done in the right way. Becoming a homeowner means committing new responsibilities, which means buying a home should never be taken tightly. Taking the time to answer some questions will make sure you are truly ready to buy a new home. In this blog, we are going to tell you six questions that one should ask yourself to save money before buying your first home.
What to Ask Yourself Before Buying your first ever home:
Q1 Why do I want to buy a house?
Before you do anything else, ask yourself why you want a new house so badly? Never buy a new house on influence by friends and family. And never buy a new home if the price is low. Although it is convenient for you to buy a new house at the low cost, for the wrong reasons it would be a disaster for you. Hence, your reason should be strong and genuine for buying a new house.
Q2 Can I Afford it?
Before you ask yourself any other questions about buying a house, you should most definitely make sure that affordability is the top priority. You need to make sure you can afford a home before you make decision to buy it. You have to follow 36% affordability game, which means your entire mortgage payment should not be more than 36% of your gross income. It is worth it to take the extra time to save up a 20% down payment, if you can. Your total debt payments, including mortgage, should not exceed 36% of the gross income. If you reach beyond, you risk the possibility of losing home. You can also use a mortgage calculator to calculate your affordability.
Q3 How long do you plan to live in the area?
It usually takes around five years to recoup the costs you paid to purchase a house. If you only live in a house only for 2 years, then you may lose money on closing costs, because of the inflation of the real estate market. So, before buying a house, plan to live in that house for at least five years. Before choosing an area, you should ask yourself the following questions that are listed below;
Are you happy in this area?
Is the neighbour of my house is polite and friendly?
How is the transport facility?
Q4 Do I qualify for a mortgage loan?
When you purchase a house, you often look for the mortgage company for a loan. To get a mortgage loan at the best internet rates, your credit score must be or above than 720 and your income should be stable. All mortgage lenders only offer you a loan if your credit score is high and your employment history is stable, your chances of getting a loan will be higher. If your credit score is poor and your paying debt for a long time, then don’t jump into this investment. First clear your debts and save money for a down payment and then apply for a mortgage loan.
Q5 Are you ready for the responsibility?
Once you are a homeowner, you are responsible for many issues that a landlord normally oversees when you are renting- you have to keep some extra money for an unexpected repair. If your budget is too tight with a house payment, you are likely aren’t ready for buying a home.
Q6 Do I need/ want this house?
There is a huge difference between need and want when it comes to buying a property. Needs implies that you are living on rent at old constructed home. And want implies that you have your own house and want a second home just to impress your society. Buying a house is a huge investment, so please make sure whether you need/ want a house. You must take the help of a professional Seattle mortgage broker to assist you with the best mortgage solutions.