Many people consider home ownership to be a key component in the so-called American Dream, but unfortunately, many do not take the necessary and informed steps to make a decision that makes the most sense. , for them! After more than 15 years as a licensed real estate seller in New York State, I have come to realize and believe that the better informed and prepared a potential buyer is, the happier the end results will be. ! When/if, you decide, you are considering buying your own home, there are at least 7 key factors that must be thoroughly considered and understood. With that in mind, this article will briefly try to consider, examine, review and discuss these and why they are important.
1. Good credit: Before you start your search (house hunting), check your credit, in detail! Go beyond just your credit score, but get a copy of your credit report from all three major reporting agencies and make sure it’s accurate and there’s nothing that could affect your success. Almost everyone (especially first-time buyers) needs a mortgage to use as part of this process, so excellent credit is an essential component.
two. Sufficient Income: Do you have sufficient income and income/work history? Check with a trusted mortgage professional ahead of time and find out how much you qualify for! That way, you’ll know, from the start, the price range, to look for!
3. Know the debt ratios: To qualify, mortgage lenders typically apply at least two key metrics, with respect to debt ratios. One is your general debt to income ratio, and the other is specific to your home loan and your income! Know what it is and address your specific needs before you start!
Four. Personal comfort zone: Happy homeowners are comfortable with the financial burdens, etc., of owning a home! This is an individual thing, so get a checkup, from the neck up, and know yours, before deciding to take this big step!
5. Deposit: In most cases, conventional loans require a 20% down payment, but this often differs, depending on the specific terms of that loan! Can you comfortably afford the down payment without becoming rich at home, but stressed and uncomfortable?
6. Bookings: Prepare, with specific financial reserves, that wise buyers have, in reserve, in advance. Some of these include reserves for: repairs; renovations; updates; maintenance; anticipated and unforeseen expenses!
7. Ready/prepared to own a home: Are you prepared, both emotionally and financially, to own a home? When you rent, your landlord is usually responsible for major expenses, etc., but when it’s your home, you’re responsible! Are you ready, willing and able to handle these?
Make owning real estate enjoyable, enjoyable, and wise by being prepared! Are you ready and able to be a happy owner?