Are You Ready to Buy a Home? Read on to Find Out
A lthough property prices differ throughout the US, it is still important to consider that as of January 2020 the average price of a house in the US is $306,000. So if you're deciding to put down your deposit, are you ready to buy a home?
There are multiple factors to consider.
- Do You Have a Good Real Estate Agent?
Without an excellent real estate agent, you will be a fish out of water. In order to find a house that fits all your needs and is within your budget, you need to have the help of a buyer's agent. Besides just being able to find a house, they also help with saving money by negotiating the best deal you can get and sometimes help you save as much as thousands of dollars.
Furthermore, they save your time. Having a real estate agent means you will not have to wade through humongous piles of paperwork, and you won't need to know all the technicalities of law.
Make sure you find a good real estate agent because there are some not-so-good agents out there who may not have as much experience as is desired, especially for the particular area you want to buy a house in. Area-specific expertise matters a lot when it comes to being a competent real estate agent.
- Do You Plan On Staying Put for at Least a While?
It is important to be ready to settle down or at least be ready to stay in the city you plan on buying a home in for at least a few years. If your job requires you to move a lot, you may not be ready to buy a home.
The longer that you live in your home (or the longer that you hold the property you buy), the more equity you are likely to earn. Over the years, as the value of your property rises, so will your equity.
You will be putting in a lot of money and effort into your home if you buy one, so make sure to get a return on that investment by staying longer and selling the house for a profit later on down the line.
- Do You Have Enough Money for a Down Payment?
The best way to buy a home is in full, but that's not always possible for everyone. If it isn't possible for you either, try to save up at least 20% of the entire cost of the house. Never pay less than 10%, or you'll drown in debt for decades!
Be vigilant in selecting a mortgage, and try to do your due research before you pick out which one will work for you. Do not just blindly listen to your friends, make sure you find out information on your own before making a decision about your mortgage on your new house.
- Are You Completely Debt Free?
If you already have debts, it's not the best idea to add to them. Make sure you have zero debts and on top of that have a rainy day emergency fund.
Don't plan on buying a home if you still have to pay off your credit card debt, your car loan, or your student loans. Not only will it crush you into lifelong debt, but it can also take a toll on your mental health and leave you extremely stressed about your financial situation.
- Can You Afford House Maintenance Fees and Insurance Fees?
Buying a house is expensive for sure, but taking care of it is way more expensive in the long run. Can your budget handle maintenance fees? Make sure you won't be left broke if the plumber visits or if your gas pipe breaks down.
It is also important to have house insurance the first chance you can afford it. Imagine spending all your precious time and money buying a house and building it into a home, and one unfortunate night it floods, and you lose everything. To avoid that, factor in the monthly costs of house insurance and see if you can afford it.
- Can You Afford Moving Expenses?
Depending on how much stuff you have, moving will cost you upwards of $700, sometimes even double. You can either do it yourself with a couple of friends and family, or you can hire movers. It's best to get money quotations from multiple companies before deciding on one, so you can get the best bang for your buck.
If you do it yourself, you are going to need a lot of cartons, boxes, bubble wrap, and other moving supplies. Make sure you calculate properly.
So, Do You Think You’re Ready?
Being “ready” to buy a house has a lot to do with financial stability, but it is worth knowing what all those finances are. Based on the above-mentioned points, are you ready to buy a home?
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This post is tagged in:
- money
- finances
- checklist
- home owning
- buying