Does your monthly rent payment feel a bit like dumping money down the drain? Have you been dreaming about DIY remodeling projects and paint swatches? Homeownership comes with a lot of perks. But it’s not as simple as trading in your rent payment for a mortgage.
Before you take the leap, you want to make sure you’re ready. These three questions can help you decide.
Are you planning to relocate soon?
The rule of thumb is you need to stay in a home for at least five years to see a positive return on your investment. Depending on the market, this time frame can fluctuate. However, if you have plans to relocate soon, you might want to hold off on the house hunting.
Insider Tip: Just because you hold off on house hunting, doesn’t mean you should delay planning. If you dream of one day buying, start saving now. Even a little bit each month can make a big difference when it comes time to make your down payment.
Are you financially ready?
Did you read the insider tip above? Buying a home requires a pretty penny. Not only do you need the funds for a down payment, you’ll need to cover additional expenses like closing costs and inspections. Plus, if you want to score the best interest rate possible, you’ll want to put down a full 20%.
Insider Tip: Another major factor in determining the interest rate you can secure is your credit score. The higher the better. If now isn’t the time for you to start house hunting, use the time productively to start raising your credit score.
Is your family onboard?
If you have a partner, are they ready to buy? When you own your own home, you aren’t just investing financially. You’re also investing emotionally. Every broken pipe and leaky roof are yours to fix. Make sure you and your partner are ready to take it on together.
Are you ready to explore your options? Talk to me today.