Choosing to buy your first home is a big decision. Most people do not wake up one morning deciding to buy a home. There is usually a thought process to making the decision to buy a home that begins months before you pull the trigger on one of the largest purchases of your life.
There are some questions you want to ask yourself to help you make the decision.
Interview With A Buyers Agent
A good buyer’s agent will do an upfront consultation for free.
And scheduling a consultation might be a great idea to get you on the right track. In the buyer consultation, you will get an overview of the home buying process current market conditions and what is involved in buying a home.
They can even help you determine of buying a home is a good choice for you.
Your buyer consultation is a good time to ask any questions that will help you make your decision.
What Is Your Motivation To Buy?
The first question to ask yourself is why do you want to buy a home? Get to the bottom of your drive to buy a home.
Often a first-time home buyer in MA wants to set down some roots in a community. Often there are life events that trigger the motivation, a job promotion, a change in their familiar status or sometimes they have to move and are sick of renting.
Buying a home because all your friends are doing it is not a good reason to buy a home. Dig deep and come to a sound conclusion of why you want to own a home.
Are You Ready To Take On The Responsibility?
Owning a home goes beyond just purchasing one. You can’t just call the landlord when you have no hot water, or the dishwasher is not working.
You will now be responsible for maintaining your new home and taking care of all the costs of associated with owning a home. It also means you may have to give up some of your free time to do regular tasks to maintain your home and yard.
There are costs associated with owning a home. You must plan on ongoing maintenance and any emergency repairs. This also includes buying equipment like snow blowers, lawn mower, tools, lawn equipment and more.
Talk to friends and family and find out what it takes to own a home and some of the challenges it has presented them.
Owning a home can be a great source of pride and satisfaction, make sure you want to put in the effort and take on the responsibility.
Are You Willing to Stay Put A Minimum of 3-5 Years?
There are costs to selling a home and it will take at least 3-5 years before you break even. It is not like renting where you decide you want to move and you find a new rental and relocate.
Consider you job stability as well. Your current job is what is allowing you to secure a mortgage. Is your job one you are willing to settle into?
Buying a home may not be a good decision if you are actively job hunting or know your current job is not where you want to be.
Do You Have Enough Savings To Buy A Home?
Buying a home requires a down payment. The good news is you can buy a house with a minimum of 3% down depending on your credit profile. So, for every $100,000 in purchase price you will need a down payment of $3000.
On top of your down payment, you will need to fund your closing costs. Closing costs are the fees for service required to clos on a loan they include attorney’s fees, tiles services, title insurance and other miscellaneous fees.
Above and beyond closing cost make sure you also have a couple of months of reserve funds to weather any unforeseen costs.
How Much Can You Afford?
Before delving into buying a home for the first time, have an understanding of what you can afford for a monthly mortgage payment which includes principal and interest payments as well as monthly taxes and insurance.
Get pre-approved early so you know the real numbers involved. Do not make assumptions on current interest rates and what else is involved in determining your monthly mortgage payment. Talk to a professional.
Many people love owning a home and the independence they gain for themselves and their family. But homeownership should be considered carefully before jumping in feet first.
Buying a home is not easy to unravel if you made the wrong decision.