Let’s break it down.
Owning a home is a common goal for people to have. Everyone has their own ideas for how they see their dream home but the real question we have to ask ourselves is “Can I afford it?” When debating on if you are ready to purchase a home or not yet, take some time to consider these concerns.
This is one of the most important questions. Don’t let anyone trick you into thinking that in order to buy a home you need to debt-free. This is a huge myth. Whether it be your credit card bills or your loans, the important part is making your payments on time and paying more than the minimum payment. This helps prove you’re personal responsibility and helps you keep a great credit score! When buying a home, you will be spending a good chunk of change on a down payment. so take the time to go through your monthly payments and get an idea of how much you can afford on a monthly mortgage payment.
Often times you will hear people say that you can purchase a home with zero money down. While this is true, it may not be the most beneficial way to purchase your home. Remember the bigger downpayment you make, the less your monthly mortgage payments are going to be. It is better to just have down payment and closing costs already saved. Don’t go into the home buying process ready to only put 10% down or less, the more you can put down, the better.
Will you be in this area for a long period of time? Does your work require travel often? Do you know the area well? What is the surrounding community like? These are all questions you’ll need to consider when looking at different homes. The general rule of thumb is that if you plan one living in an area for more than 5 years, you should look into purchasing and any less than that you should stick with renting. Depending on your answers you may end up rethinking buying for the time being and stick to renting. You want to be in the home long enough to break-even on your initial costs.
It would be really beneficial to have extra money saved for emergencies with a home. If something were to go wrong like losing your job or needing an unexpected large repair, would you be able to afford that? You always need to have money saved so that you are expecting the unexpected and ready to take on the challenge. The recommended amount is to have about 6 months of your yearly income put to the side, so that if something happens you are prepared.
Take yourself through these scenarios and make sure you are ready. If not, stick with renting for now and focus on saving your money and getting your credit score up. Putting buying a home on hold for a year is nothing when it’s going to benefit you in the long run. If you are ready to make that leap of faith than do it! Buying a home is one of the smartest investments you can make. When you pay rent, that money is gone forever. When you pay your mortgage, every one of those payments brings you closer to owning your own home.
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Interested in buying, selling or renting? We are here to help! Call us (407) 380-2800 or visit PremiumPropertiesFL.com