A large financial decision such as buying a house should never be made in haste. There are plenty of things to consider but the most important of them all is whether you are mentally prepared to buy a house or not.
No doubt, you might have several good reasons that make buying a house the right decision but have you considered things financially and emotionally? There will be a list of responsibilities waiting for you when you sign the title paper so think carefully.
To make it easy for you, we have come up with a couple of questions that you should ask yourself:
Am I Financially Prepared?
If you are struggling to pay your monthly bills then what will you do when the mortgage payments are due? If even a single payment is late, you will fall into debt and that will create more money problems. Don’t even think about using your credit card because that will just increase your debt.
Do I Want to Settle Down?
The rule of thumb when it comes to buying a house is that the purchase makes sense if you plan to stay in the house for more than 5 years. After making such a huge investment, you will have to shift your monetary priorities. So, make sure that there are no obligations or any career changes in the foreseeable future.
Have I Saved for the Down Payment?
Most lenders ask for a 20% down payment. This is the only largest investment that will be required in the initial stages of the home buying process. Don’t forget to save up for insurance, closing costs, repairs, and taxes. Then there is the additional expense of furnishing your house to make it livable. That’s thousands of dollars that will have to be paid out of your pocket.
Will I Be Able to Make the Monthly Payments?
Unseasoned buyers often overlook the additional costs of becoming a homeowner. If you are buying a house in a neighborhood that is run by a homeowner association then on top of the monthly and yearly costs mentioned above, you will also have to pay the HOA fee.
How Good Am I With Repairs?
How good are you with tools? From time to time, your house will throw a few small repairs at you. Instead of calling a plumber or any other technician, learn how to make those repairs by yourself.
How’s the Housing Market Doing?
If you are planning to get a fixed rate on your mortgage, do you think you will be able to afford it? What about a variable rate? If the interest rates go high, will you be able to afford the rise? These are just some of the things you need to think about.
So, what do you think? Are you ready to take on these financial responsibilities? If yes, then consult with a Winter Garden Realtor to find out the best course of action. Get in touch with a qualified Orlando real estate agent by visiting Megan Dowdy Realty. For further information, call on 407-509-9279.