{"id":8087,"date":"2023-08-02T10:30:00","date_gmt":"2023-08-02T10:30:00","guid":{"rendered":"https:\/\/thezakariagroup.com\/how-to-know-if-youre-ready-to-buy-a-home\/"},"modified":"2023-08-02T10:30:00","modified_gmt":"2023-08-02T10:30:00","slug":"how-to-know-if-youre-ready-to-buy-a-home","status":"publish","type":"post","link":"https:\/\/thezakariagroup.com\/how-to-know-if-youre-ready-to-buy-a-home\/","title":{"rendered":"How To Know If You\u2019re Ready to Buy a Home"},"content":{"rendered":"
If you\u2019re trying to decide if you\u2019re ready to buy a home<\/a>, there\u2019s probably a lot on your mind. You\u2019re thinking about your finances, today\u2019s mortgage rates<\/a> and home prices<\/a>, the limited supply of homes for sale, and more. And, you\u2019re juggling how all of those things will impact the choice you\u2019ll make.<\/p>\n While housing market conditions are definitely a factor in your decision<\/a>, your own life and your finances may be even more important. As an article from NerdWallet<\/em> says<\/a>:<\/p>\n \u201cHousing market trends give important context. But<\/em> whether this is a good time to buy a house also depends on your financial situation, life goals and readiness to become a homeowner<\/em><\/strong>.\u201d<\/em><\/p><\/blockquote>\n Instead of trying to time the market, it may help to focus on what you can control<\/a>. Here are a few questions that can give you clarity on whether you\u2019re ready to make your move.<\/p>\n One thing to consider is how stable you feel your employment<\/a> is. Buying a home is a big purchase, and you\u2019re going to sign a home loan stating you\u2019re going to pay that loan back. That can feel like a big obligation. Knowing you have a reliable job and income coming in can help put your mind at ease. As NerdWallet <\/em>explains<\/a>:<\/p>\n \u201cA mortgage is a big commitment . . . Wait until your employment is stable before thinking about buying a house.\u201d<\/em><\/p><\/blockquote>\n To make sure you have a good idea of what you\u2019ll need to save and what you can expect to spend on your monthly payment, talk to a trusted lender. They\u2019ll be able to tell you about the pre-approval process and what you can borrow, current mortgage rates and approximate monthly payments, closing costs to anticipate, what percent of the purchase price of the home you\u2019ll need for a down payment<\/a>, and more.<\/p>\n The best part is you may find out you\u2019re closer to your goals than you realized. You don\u2019t necessarily need to put 20% down, unless it\u2019s specified by your lender or loan type. As Down Payment Resource<\/em> says<\/a>:<\/p>\n \u201cA 20% down payment on a home is great, but . . . Many mortgages require no more than 3% to 5% of the purchase price as a down payment. Plus,<\/em> there are loans and grants that may help cover these costs. Search for down payment assistance in your area, and discuss your results with your mortgage lender . . .\u201d<\/em><\/strong><\/p><\/blockquote>\n Another important thing to think about is how long<\/a> you plan to stay put. It takes time to build equity<\/a> in your home through paying down your loan and home price appreciation<\/a>. If you plan to move too soon, you may not recoup your investment. For example, if you\u2019re looking to sell and move again in a year, it might not make sense to buy right now. As a recent article from CNET says<\/a>:<\/p>\n \u201c<\/em>Buying a home is a good idea if you\u2019re planning to stay put for at least three years.<\/em><\/strong> Home values typically increase between 2% and 5% annually, so you could end up paying more in closing costs than you\u2019d earn in proceeds if you sell after only a year or two.\u201d<\/em><\/p><\/blockquote>\n1. Do You Have a Stable Job?<\/strong><\/h4>\n
2. Have You Figured Out What You Can Afford?<\/strong><\/h4>\n
3. How Long Do You Plan to Live There?<\/strong><\/h4>\n