“Buying a home is the largest purchase you will ever make.” Have you heard this before? Owning a home has great benefits for a family but, there are also responsibilities that one need not forget.
Preparing for homeownership or for that next “Step-Up” Home Purchase? Take a hard look at your current situation and determine;
Do you have a steady income and a steady employment history for at least two years. Can you fully document that income for your lender to get the best loan terms?
Do you have a credit history and do you know what that history says about you. There is a good source to find out your credit score, and allow you to take a thorough examination of your credit report at www.myfico.com.
Your total debt is manageable and you can afford to take on the costs associated with homeownership which can range from accessories, such as blinds, for the house once you move in to repairs, taxes, assessments, HOA fees, higher utility bills as compared to renting due to landscaping upkeep, etc…
You have money saved for a down payment and closing costs or you have access to other sources of funds, such as an employment bonus, tax refund, or a gift from a relative. Also, do you know that the “means of which” you have these funds or reserves to close can determine what type of loan you are able to obtain. (i.e…a gift from a relative versus other types of savings)
Look at future plans that might affect your financial ability to maintain the costs of homeownership.
Costs of a growing family when looking at your homeownership budget. Projecting what those costs could be 5-7 years out is also a sensible idea due to the fact that most people stay in a house on average about every 5.5 years.
Would your future plans, which might include a wedding or college education, be in danger if you bought a home or upgraded to that next “step-up home?”
There are many things to consider so take the time to look at all sides of homeownership or of buying that next home to make the best decision for you and your family.
