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Think You Are Ready to Buy?

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Here are a few points I considered when I bought my home…

Are you ready?
  • Have you decided that you want to stay in your current location for at the least the next 3 to 5 years? Are you ready to maintain your home? If you are coming from an apartment there will no longer be a maintenance guy to call if something breaks. Have you done the research on owning a home? How the furnace works, what to do if the washer breaks, etc.
Credit
  • Know where you stand with your credit. Have you pulled your credit report to see if everything is in order? The last place you want to find out that you have credit issues is in the loan officer’s office. Get your credit report and anything that needs to be addressed or repaired, do it before hand.
Debt
  • What is your debt to income ratio? This will be important when the bank is considering whether to approve your mortgage application. This is also important when deciding how much home you can afford. Do you have a car note, student loans, credit card bills, etc.? This is the time to be honest with yourself about what you owe and whether you can take on a mortgage right now.
Down payment/Closing costs
  • There is a good chance that you will have to bring some cash to the table to close the deal. Will this be a struggle or have you been saving towards buying a home?
Timing
  • Don’t rush into anything. When I bought my first place, it took me a year to find the condo I wanted in an area that I wanted to live in with the amenities I desired. Don’t feel that you have to jump on the first place you see or like, there are so many properties out there! Make sure you make a decision that best suits your needs and your wallet.

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