When To Buy A New House

Have you been living under your parents’ roof for a long time now? Are you tired of getting along with your difficult landlord? Are you ready to start your own family? If your answer to these questions are “yes”, then the perfect solution is buying your own house. But the question is, “Are you capable of purchasing a house?” Some people are hesitant to get a new home because they are scared of getting into debt or making the wrong investment. This is the biggest financial move a young person may ever make. You should make the investment because it makes sense for your finances. You buy when you’re ready. The question is, “When will that be?” Continue reading below to find out if you are ready to purchase a new house:

Check the Costs

Find out how much the houses in the area that you’re planning to move into will cost. Also include the cost of the homeowners insurance and association fees, maintenance, property taxes, and other expenses. When purchasing a home, it is also important to get a home insurance quote from several insurance companies. There are affordable insurance packages to choose from that will suit each person’s budget. Once you’ve summed up the expenses, check if your budget for a new house can cover all of that. I personally use American Family and so do many of my clients. Bundling your car and home insurance “may” save you money, but not always! Check the quotes for each from all companies and then compare.

Have a Stable Income

If you have plans of going back to school or only get paid seasonal, then you should think twice about purchasing a new home. You need a stable income to cover all the home expenses. You will want to have a source of income for at least two years. You’ll need to be at your job of two years or in the same field. Talking with a good mortgage broker is key to knowing your guidelines. I can assist with this, just contact me anytime.

Knowing Your Credit Score

You will want to have your credit checked and go over all your expenses and debt. You will need a credit score of at least 640 to qualify for an FHA loan which will let you put as little as 3.5% down on your new home. Working with a good loan officer can help you from start to finish. You will need to correct any errors on your credit report and possibly have enough time to clean up your credit and boost your score. This should be done at least a few months before purchasing.

Finding the Right Realtor

After you’ve checked your finances, situation and credit you will then need to work with a good buyer’s agent to help you find the right home. An agent to help you deal with all the contracts, laws, title, inspections and more during the process. Working with your own buyer’s agent will enable you to get personalized and specific attention and you’ll have someone working on your side, not the seller’s. I’d love to discuss your home buying goals. Give me a call or email me anytime!