How to Know You Are Ready to Buy a Home

Posted by harryjason on January 15th, 2017

The housing market boom is evidence that owning a home is not always a straight-forward decision. There are some important factors to consider, helping you decide whether looking into homes for sale Chandler is actually the right choice.

You current financial status

You financial situation is the arguably the biggest determinant on whether owning a home is the right choice. Struggling to pay bills is a good indication that buying a home is not the best financial decision. At the very least, you should have saved 10% for a down payment. Consider savings such as emergency fund, retirement and private mortgage insurance where applicable. If you can comfortable save for a down payment and other savings, it may be time to start looking for real estate Sandy. 

How long you intend to stay

In the past, prospective home buyers were advised to only buy a home if they intended to stay for at least three to five years. Because of the current transaction costs, most experts recommend at least seven years. It takes roughly five years to recoup the cost of the loan, moving, commission and other costs associated with purchasing a home.

Consider hidden expenses

The actual cost of owning a home spans much further than the transactional price. Potential hidden expenses include homeowner association fees and special projects, repairs or renovations. These hidden costs can seriously impact your household budget if not taken into account before buying a home. Real estate companiesin Scottsdale can help to paint a clear picture of the long-term costs of the property you are looking into. In short, you should have the finances to cover these hidden or unexpected costs.

The prevailing housing market

Lastly, consider the condition of the housing market in the area you are looking to buy a home. The cost of purchasing a home can vary widely from one neighborhood to another or from one city to the next. The cost of renting can go up to 30% of your income, and continues to rise over the years. A fixed-rate mortgage makes it easer to anticipate future costs as they remain relatively stable over the years. This is the biggest advantage of owning a home once you have passed the aforementioned criteria.