Signs That You Are Ready To Purchase Your First Home
Posted on: 15 November 2016
If you have been looking at properties for sale, dreaming of your future home, you may be ready to get serious. While it can be nerve wracking to purchase your first home, it is also quite freeing. Instead of paying rent to a landlord, you will be investing in your future instead. If you are worried about whether you can afford the bills with a new home, but you are ready to settle down, it's time to talk with a Realtor about your options. With the types of mortgages you can get today, it is harder to get in over your head than it used to be.
You Know You Are Staying in the Area
When you buy a home, you are making a commitment to stay in the area. When you are ready to settle down and begin putting down roots, it's time to purchase your first home. While you may move someday, buying a house means you probably don't have plans to move across the country in a year or two. When you buy your first home, you aren't building much equity for the first five years. This means that if you sell before the five year period, you probably won't get any cash out of the deal.
You Are Preapproved for a Mortgage You Can Afford
Whether it's an FHA loan, a loan from the Veteran's Administration, or a traditional 30 year mortgage, a preapproval means you are financially ready to buy your first home. Look into your options if you are struggling to get a down payment, as the Federal Housing Authority offers government backed homes for first time home buyers if they meet income guidelines. Once you get preapproved for a mortgage, you will know what price range you can look in to find your dream home.
You Have Some Savings
While you may have saved for a down payment, you will also need to have some cash in savings for immediate repairs on the home. When you are a new home owner, having some cash in the bank is important. You won't necessarily have all kinds of emergency costs, but it is good to have a cushion for you to use if you need it. Buying a home is a commitment, and you should have several months of mortgage payments saved at the very least. This way, if you are struggling one month to pay your mortgage on time, you will be able to.
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