{"id":26908,"date":"2023-08-02T16:54:46","date_gmt":"2023-08-02T22:54:46","guid":{"rendered":"https:\/\/nadinekirk.com\/?p=26908"},"modified":"2023-08-02T16:54:46","modified_gmt":"2023-08-02T22:54:46","slug":"how-to-know-if-youre-ready-to-buy-a-home","status":"publish","type":"post","link":"https:\/\/nadinekirk.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\u00a0buy a home<\/a>, there\u2019s probably a lot on your mind. You\u2019re thinking about your finances, today\u2019s\u00a0mortgage rates<\/a>\u00a0and\u00a0home 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\u00a0your decision<\/a>, your own life and your finances may be even more important. As an article from\u00a0NerdWallet<\/em>\u00a0says<\/a>:<\/p>\n<\/div>\n<\/div>\n<\/div>\n \u201cHousing market trends give important context. But<\/em>\u00a0whether this is a good time to buy a house also depends on your financial situation, life goals and readiness to become a homeowner<\/em>.\u201d<\/em><\/p><\/blockquote>\n Instead of trying to time the market, it may help to focus on\u00a0what 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\u00a0employment<\/a>\u00a0is. 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\u00a0NerdWallet\u00a0<\/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\u00a0down 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\u00a0Down Payment Resource<\/em>\u00a0says<\/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>\u00a0there 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><\/p><\/blockquote>\n Another important thing to think about is\u00a0how long<\/a>\u00a0you plan to stay put. It takes time to build\u00a0equity<\/a>\u00a0in your home through paying down your loan and\u00a0home 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\u00a0says<\/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>\u00a0Home 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?<\/h4>\n
2. Have You Figured Out What You Can Afford?<\/h4>\n
3. How Long Do You Plan to Live There?<\/h4>\n