NMLS: 2576 | CT LICENSE: 1101 | MA LICENSE: LS2576 | MI LICENSE: FR0023580 Purchasing a home seems to be the desired outcome for most people, but many walk into the home buying process not knowing what to expect, or how to start. Below are some clear and unbiased facts about buying a home.
The best time to buy is when YOU’RE ready.
Talk to 10 different realtors and all of them will say something different about the best time to buy. However the truth is, the best time is when you’re ready. Buying a home is a big commitment, and it’s important to make sure it’s at a time when you are certain you’ll be living in the same place for at least 2-3 years. This ensures you can gain some equity on the home before selling again.
If you can barely afford the home, don’t buy it.
No matter how great the home is, it doesn’t make sense to buy a house that’s out of your price range. The more you stretch the purchase the harder it’s going to be to pay on the mortgage each month. It’s extremely important to determine a budget before buying a home. This will keep you on track during the buying process.
Having a down payment is important
It is important to put down as much money down as possible when buying a home. This is not only benefit to the buyer, but to your mortgage lender as well. By putting money down, you are gaining equity from the start. Also, in most cases, if a buyer is able to put down at least 20% they can avoid paying private mortgage insurance (PMI). What this means is that buyer need to start saving for their first home long before stepping into the pre-approval process.
Always have a backup plan.
It happens to everyone. Everything seems to be going to plan, and then something happens and everything falls through. When searching for homes have a plan B and C. This way if the home of your dreams falls through, you have two more great options to fall back on.
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