Ask yourself these 5 questions before making this major decision.
Are you financially prepared to buy?
Many first time home buyers fail to consider the costs of a financial emergency or saving for important goals like retirement. In addition to this, an inadequate down payment or a below average credit score could cause future financial hardships if you are looking to get an offer accepted in todays competitive market.
Will you stay in your new home long-term?
When purchasing a home, there will be an abundance of one-time expenses such as broker fees, title insurance and even mortgage origination fees. With that being said, the longer you stay in your home, the more time you will have to spread out these costs while your house will simultaneously increase in value.
Which offers better value in your area?
It is common to assume that buying a home would be a better choice because it would give you the opportunity to build equity on a home. But, the cost of rent has fortunately decreased in many locations while home prices have increased. This means that renting a home may be even more of a bargain than one might think.
Would you still want to buy if your home’s value doesn’t rise?
There is truth in the fact that house prices have historically increased over great periods of time, but this does not mean that this will occur in any given time frame or even in a particular state. The value of your house is influenced by a variety of external factors that are simply out of our control. These factors may include anything from the local economy to whether or not your neighbors take care of their yards.
Is it the right time for you and your family?
It is important to consider that buying a home is not just a financial transaction. Becoming a homeowner comes with more responsibility and expenses. Be sure to make the right decision for you and your personal finances.
Learn more by signing up for our FREE informational seminar where we cover all of these topics in depth and MORE.
