When you’re nearing the time to buy a home, you probably have a lot of questions. The housing marketing is steadily improving, and this signals a great time to buy. If you’re not sure if it’s the right time, ask yourself the following questions:
Where Are You Now?
Many things about your current lifestyle and dreams for the future need to be considered before deciding to become a homeowner. Are you anxious to settled down or do you want to be free to job hop or travel? Are you single, have a family, or are your retired? Your current situation is a big factor when deciding to buy or rent a home.
Will it be an investment?
Look at the area you live in. The housing market can be vibrant in one location and slow in another. Do some research online to see what the housing market is like where you want to land. It is appealing to many to have their money go towards equity each month rather than rent.
Can you afford it?
Often mortgage payments are similar to monthly rent, but there are other costs associated with purchasing and owning a home. Typically, a down payment is required, this amount can anywhere from 5% to 20% of the home’s value. Closing costs, which range from 3-5% of the home’s price, should also be considered in your calculations. Home insurance, property and school taxes, and home maintenance costs are additional expenses that come with purchasing a home. Crunching these numbers may help you figure out how much home you can afford.