By The A-Team | Aug 21, 2017 | Buyers
At some point of your life, you'll start to seriously consider the idea of buying your first home. Buying a home is exciting and awesome, but buying before you're ready can have repercussions. That’s why It is important to know if you are ready to buy a house emotionally and financially. At The A-Team we take this super seriously...
The most important thing that you should prioritize, first and foremost, when it comes to buying your first house is money. It really plays a huge role and can greatly influence your decision of wanting to own a house. A recent post from Myoccu speaks of high savings as a prime way to tell if you're ready:
As we all know, having a steady income and a good amount of savings is crucial for your decision. A lack of money is enough reason to postpone buying that dream home so is the first thing to consider.
7 signs you’re ready to buy your first home4. You’ve got plenty of savings.
First off, you’ll need a down payment. You’ll get the best interest rate if you put down 20 percent, but an FHA loan can require as little as 3.5 percent. On a $200,000 home, that’s at least $7,000. But wiping out your savings to scrape together a down payment? Bad idea. Wait until you have some extra cushion for:
Home repairs—at least enough to handle the average home repair cost of $840 Closing costs, moving costs and other upfront expenses Emergencies—at least three to six months’ worth of income Read full article here...
[caption id="attachment_27012" align="aligncenter" width="628"] Save your money![/caption]
After money, the next most important thing to consider is the kind of home you want to buy. This also relates to the first factor that we talked about earlier which is money. Whether you want a condo or a single-family home, knowing exactly what you want can help you budget. In the following post from Preferred Realty, it's explained how your choice of home can affect your readiness to buy:
Your future plans play a large role in your choice of home. If you’re planning on having a family in the future, then it might be better to buy a single-family detached house. If you're single, perhaps an apartment or townhome might best suit your lifestyle.
Ready to Buy a Home? Consider These Five Things First5. What kind of home do I want?
If your job history, finances and credit are in order, you’ve got to ask yourself what style of home is right for you. Here’s where you need to think short-and-long-term. Right now, a high-rise studio apartment in the city may seem like an ideal location for a single millennial buyer. However, if you’re that buyer and you can see yourself with a spouse or family in a few years, renting that perfect pad may be a better option. In the not-so-far-away future, you may be thinking more of a single-family home in the suburbs! Make sure you look at the bigger picture before picking the home that’s right for you. Read full article here...
You may be ready to buy a house already because you have enough funds saved and you are working with a steady income. Nevertheless, there could still be a few reasons that you might not have realized that indicate you aren't ready yet. Next, Laura Agadoni of Trulia describes your commitment as one big reason you shouldn't buy a home, among others:
Knowing that you're ready to be live in one place for many years to come is important. You may not be ready to stay in one place for a long period of time, especially if you're the kind to move around.
Find out if You’re Ready to Buy a House
Are you ready to stick around?Unless you’re pretty sure that you’ll want to stay in the area for the next three to five years, you’re not ready to buy. “If you buy a house and have to sell the next year, you’re likely to lose money because appreciation won’t catch up to the closing costs and post-purchase expenses during that short time,” says Moffitt. If your job is in limbo, or you’re considering moving a few hours away to be closer to family in the near future, it’s wise to hold off on buying a home. Read full list here...
Thinking of buying your first home in Fort McMurray? Have a look at our guide to the different styles of homes you can expect in the area, and give us a call if you think you're ready!