Many people consider home ownership to be a key component in the so-called American Dream, but unfortunately, many do not proceed in the necessary and informed manner to make a decision that makes the most sense. , for them! After more than 15 years as a licensed real estate seller in New York State, I have come to realize and believe that the better informed and prepared a potential buyer is, the happier the bottom line will be. ! When/if, you decide, you are considering buying a home of your own, there are at least 7 key factors that must be thoroughly considered and understood. With that in mind, this article will briefly attempt to consider, examine, review and discuss these and why they are important.
1. Good credit: Before you start your search (house-hunting), examine your credit, in – detail! Go beyond just your credit score, but get a copy of your credit report from all three major reporting agencies, and make sure it’s accurate and nothing will affect your success. Almost everyone (especially first-time buyers) needs a mortgage to use as part of this process, so your excellent credit is an essential component.
2. Sufficient income: Do you have sufficient income and income/work history? Check with a trusted mortgage professional early and find out how much you qualify for! That way, you’ll know, right from the start, the price range, to search!
3. Know the debt ratios: Mortgage banks typically apply at least two key metrics, relative to debt ratios, to qualify. One is your overall debt to income ratio, and the other is specific to your home loan and income! Know what it is and address your specific needs before you start!
4. Personal comfort zone: Happy homeowners are comfortable with the financial burdens etc. of owning a home! This is an individual thing, so do a check-up, from the neck up, and know yours, before deciding to take this big step!
5. Deposit: In most cases, conventional loans require a 20% down payment, but this often differs, depending on the specific terms of that loan! Can you comfortably afford the down payment without becoming rich at home, but stressed and uncomfortable?
6. Bookings: Prepare, with specific financial reserves, that wise buyers have, in reserve, in advance. Some of these include reserves for: repairs; renovations; updates; maintenance; planned and unforeseen expenses!
7. Ready/prepared to own a home: Are you prepared, both emotionally and financially, to be a homeowner? When you rent, your landlord is usually responsible for major expenses, etc., but when it’s your home, you are responsible! Are you ready, willing and able to handle these?
Make owning real estate nice, enjoyable and wise by being prepared! Are you ready and able to be a happy owner?