Are You Ready to Buy a Home?
Contrary to what most people believe, homeownership is more than just attaining a certain age. Owning a home is determined by various factors, from one’s financial position to the values acquired before beginning this journey. While investing in a home comes with benefits such as building wealth, Ferndale real estate attorney argue that this is not a path for all, with most people settling for options such as renting. Below, we discuss some crucial tips to consider before purchasing a home.
Factors to Consider When Determining if You Are Ready To Buy a Home
Are Your Finances in Order?
According to real estate lawyer Custer-based professionals, your financial standing will be the first determinant that tells if you are ready to begin home ownership. Finances include aspects such as your debt, your credit score, and your work history. If your monthly debt exceeds your income, buying a home will only prove to be a hindrance. A mortgage will likely push your debt to the ceiling, causing more financial turmoil. If your credit score is also fairing poorly, any funding request made to your bank will likely be denied. Lastly, consider your work history. This will be essential in helping you determine if your income is reliable, with steady employment coming in handy in helping you get an excellent start to your homeownership journey.
Do You Have Enough Down Payment?
Your down payment may only be a fraction of your total home cost, but the reality is that financing it may turn out to be more of a challenge than you imagined. While most aspiring homeowners believe that a 20% down payment is enough to secure a home, any real estate attorney Ferndale WA expert will advise homeowners to save up for more than just this initial cost. This means considering other expenses that come with homeownership, with examples of this being insurance fees, closing costs, and taxes. In addition to this, make it a point to include repair costs in your down payment, as this will be an essential part of renovation after your home purchase.
Can You Afford the Payment?
After determining your down payment costs, next comes your monthly payment. While numerous monthly mortgage payments will be structured to match your current rent, the former will likely come with additional hidden costs. Unknown to many, mortgage payments are more than just your principal and interest costs. Consider monthly expenses such as insurances, utilities not covered by your landlord, property taxes, and city assessments. Based on these, your monthly payments will increase significantly, another factor to keep in mind during your homeownership journey.
Are You Ready To Live in One Place?
This is a question that numerous homeowners forget to factor into their ownership journey, resulting in inconveniences down the line. If you are only starting in your career and expect to change jobs every few months, homeownership may not be the most suitable option for the short term. Unless your interest lies in the flipping business, buying a home will require you to live in one place. With estate attorney Ferndale professionals estimating home prices to appreciate every year, staying in your home for at least five years will be a better option to ensure you reap the most out of your homeownership.
How a Lawyer Can Help With the Process
If you are interested in getting into homeownership, a Custer estate attorney is what you need. With the myriad of real estate jargon and regulations that come with this new scope of life, chances are some items are likely to end up lost in translation. Our real estate lawyer Ferndale experts can help with this. Reach out to Dean Prather ESQ PLLC today to help you take charge of your homeownership journey.