"When is the best time to buy a house?" This is a common question that we often hear from first-time home buyers. Many analysts would tell you that buying in a cold real estate market is a time to purchase your home because it is easier for most buyers to negotiate with home prices. However, buying your first home is a personal decision that you should make despite the current condition of the market. It is true that purchasing in a cold market could help you get a great deal but there are also other factors that you have to consider in buying a home.
It would be advantageous for you to think intently in making decisions involving home buying. Do not let your emotions overrule your rationality in acquiring a home. Buy a home when you are ready not just because you want to join the home ownership craze.
Here are the indications that you are financially ready to acquire a home that you want:
1. You Have Sufficient Money and You Know How To Manage It
Purchasing a new home is a critical financial decision. It costs a lot of money from your budget. Hence, good personal financial management is necessary. You have to identify how financially capable you are in purchasing a home. Know the sources of your income and where it is spent monthly, so you will know how much of your earnings you can spend for buying a home. If you think that your monthly income will not be enough to support your needs and the mortgage that you have to pay, it is not yet the right time for you to get a home.
2. You have a significant down payment
Before for you to be able to acquire a home you have to pay first for the down payment which worth the 20% of the home price. Though there had been methods on how to get around that sheer requirement that can help you get a home for a little or no down payment but those options will only cost you bigger amount of money in the long run. With the unstable real estate market, paying the 20% down payment became more essential because you begin with some equity in case you need an extra source of cash in an emergency.
3. You have a stable source of income
Buying a house is a critical decision and requires a long-term financial commitment. Hence, it is necessary that you have a steady cash flow to support those monthly payments plus other contingency expenses that come with home ownership.
4. You have an emergency saving fund
Another sign that you have the capacity to buy a home is if you have extra money to spend for 4 to 6 months of your ฝากขายคอนโด living expenses. This is important in tight situations like you had a serious ailment, loss of job, or other unfortunate events that impedes you from working or running your business. If you have emergency fund you can still pay mortgage and sustain your needs.
5. Your debts are under control
Before you can apply for a mortgage, lenders would check your financial records and take a peek at your so called debt-to income ratio. Because they want to ensure that you really have the capacity to pay for your monthly obligations. So, if you still have outstanding debts better start paying it first before you apply for mortgage.
6. Good Credit Record
You don't actually need a perfect credit record to acquire a home but a good credit history could help you get a minimal interest rate on your mortgage and lower monthly payment. For a lender, having a good credit record simply signifies that you are worth investing in. So it is important that you check your credit history so you could immediately correct any errors in your credit report.
7. You Do Not Have Plans of Relocating In Next 5 Years
If you think that you can stay in the home that you wish to buy for at least five years, then buying is a great option for you. However, if you have plans of moving or relocating in less than 3 years better consider renting a home instead.
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