Most of the material that we post on our blog has to do with “sell your house” topics such as staging, repairs, marketing etc. Let’s switch it around and talk about buying a home so lets say you’re starting to consider buying a house: Our question to you is, “Are you ready to buy your first home?” Read below to see what it is that you need to be the ideal homebuyer.
Having a steady job and good work history is necessary before you even start thinking about buying house. Whether you’re buying a house on your own or with someone else, you need to be able to see what you can afford and if making a huge mortgage payment every month is going to be possible. Bottom line, you need to be realistic.
Good credit is probably the one of the most important things you need to have as a potential homebuyer. A credit score of 720 to 740 is generally required to qualify for a low mortgage rate. Having a lower credit score can force you to pay higher interest rates on your mortgage or even ruin your chances of getting a loan. If your credit isn’t the best, its never too late to fix it. You could consider using a credit-monitoring service. This will take time and you will need to spend some money on it, but a higher credit score is always a good thing to have.
Managing Your Debt
Having a mortgage to pay shouldn’t be something that adds to your debt. Many of us have car payments, school loans, and even credit card debt, but this should all be things you take care of or at least get under control before you consider buying a house. Take your time, budget and try to pay off your car or pay off a big chunk of your loans. There is always a way, it’s all about budgeting and control. Your mortgage shouldn’t make you dig yourself into a deeper hole; it should be an expense you can afford, point blank.
Knowledge of the Market
Do your research. Educate yourself on how the market is in the areas you’re interested in. See how much the houses are selling for, what’s the average interest rates, how much of a down payment you’re going to need, etc.
Knowing What You Want Exactly
If you’re going to invest in a home, you need to decide what it is that you want in a home. How many bedrooms? How many bathrooms? Do you want a one story or two-story house? What’s your ideal neighborhood/area? This will save you a lot of time during the looking process. Know exactly what you are going to ask your agent to find you.
If there is one thing you should take from this post is that you need to be realistic and know what you want. Truly analyze your whole situation and see what and where you can afford and if its even the right time for you. Buying a house is one of the most important purchases you will probably make in your life. If you’re going to do it, be smart!