5 Questions To Ask Youself If You Are Ready To Buy

Dated: 06/26/2014

Views: 297

A home is one of the biggest financial commitments most of us will ever make so it's understandable that we might get a little stressed over what seems like a straightforward question: Should I rent or buy? To make it easier to comprehend here are 5 questions you should ask yourself before making a decision on whither to rent or own. 1. Can you afford it? Having the money for a down payment is only the first step. Next, you need to make sure you can afford to pay your mortgage … and costs like utilities, maintenance, furniture, taxes, and unplanned costs, like home repairs. Expect that your monthly bills will change with the unexpected costs. 2. Are you financially secure? To be in a financial position that's secure enough to responsibly buy a home, you will need to consider at least the following; Decent credit you don't need perfect credit or even good credit, but generally above 620 you can qualify for a conventional loan. • A stable income • Moderate liabilities • Enough cash on hand to cover down payment and closing costs • Liquid assets as financial reserves • Financial reserves, it’s not a good idea to scrounge every penny from each of your accounts for a down payment, leaving yourself without a safety net for an emergency or hobbling your retirement savings is not a good idea. 3. What are your other financial goals? While buying a home is a major financial accomplishment, it's unlikely that it's the only one you ever intend to make. If you are starting a new business or have children entering college it might be good idea to prioritize your financial goals. 4. Are you willing to be the super? This isn't a financial question, but a lifestyle one: If the sink springs a leak, the yard needs to be mowed, the door handles breaks, who deals with it? It won't be your landlord or super, 5. Where do you see yourself in the near future? Different experts have different estimates, but generally, it's recommended that a home buyer spend at least four to five years in a home to offset the costs of buying. But aside from the numbers, buying a home is as much an emotional decision as it is a financial one it's just as important to feel that you're in a place in your life where buying just makes sense. It's no coincidence that most people seriously start considering buying a home when they get married and are comfortable with the idea of settling down and raising a family. These 5 questions will help you decide if your financial life and your personal lifestyle are better suited for renting or if now is the time to buy. Owning a home is not only one of the largest purchases a person will make it is also one of the biggest commitments a person will make and making sure the timing is right is critical.
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Chris Bianco

I am the Broker Owner of Weichert Civic Center in Scottsdale, AZ. As a lifelong AZ resident, I live and work here, am raising my family here and understand all things Arizona. My firm lists and sells....

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