If you’re a first-time homebuyer, diving head first into the real estate market can be a little intimidating.
However, research shows that you’re probably ready to take the plunge if you meet these 6 criteria:
1. You’re familiar with the local real estate market. Do you know what neighborhoods you like and the value of the homes in those areas? Your real estate agent should be able to help you with this, but bottom line – don’t buy unless you know what you’re buying.
2. You’ve saved up the money for the down payment and closing costs. Yes, there are a lot of up-front costs associated with buying a home – you can expect to have a down payment of up to 20% of the sales price of the home (depending on what type of loan you choose). Closing costs can add on an additional 2%-7%.
3. You know how much you can afford. We advise all of our clients to talk to a lender ASAP. Know your price range before you start looking so you don’t waste your time falling in love with something you can’t afford, or spend hours looking at properties that are way below your budget.
4. You know what additional expenses come with owning a home. Think unexpected plumbing leaks, lawn maintenance, possible HOA dues, etc. Owning a home is definitely more expensive than renting.
5. You have good credit. Your credit score determines the amount of money you can borrow, as well as the interest rate. But be careful about checking your credit score too often, as a large number of inquiries will decrease your credit score.
6. You haven’t made any recent, major purchases. Opening up a new credit card or taking out a loan to buy a car – both of these are examples of what not to do when you’re thinking about buying a home. Don’t do anything that will result in more inquiries on your credit score or increase your debt-to-income ratio.
Think you’re ready to take the plunge? Check out available homes using our MLS Search or contact us directly to start viewing properties.
