Signs You Should Purchase A House

1.You’ve Got Your Debt Under Control

Do you have your debt under control? Before you purchase a house be sure you are debt free. The extra cash flow will allow you the flexibility to spend more on a home rather than on your debt. 

 

2. Your Credit Score Is On The Rise

Credit is important. Your credit score will play a major role in your ability to get a home loan. Your credit score is usually lower when you are younger, and at the start of your career. As you prove yourself to be a dependable borrower as you pay down your debt, your credit score with go up. With a credit score of at least 620 you can qualify for most mortgages. 

 

3.You Have A Down Payment

How much do you have saved? You can save thousands of dollars in insurance costs over time with a strong down payment. Most of the time you will find that there are few benefits when bring a large down payment to the table. You can avoid paying for private mortgage insurance by putting a 20% down payment (PMI). PMI is a type of insurance that protects the lender if you default on your loan. Lenders require that you PMI if you do not have a 20% down payment. If you have not already, it may be time to start saving your money. 

 

4.You Are Steady In Your Lifestyle

If you are ready to settle down, stay in one place for at least a few years, may be purchasing a home might be a smart move. Yes, buying a home is a big commitment so is a mortgage. If you do not plan on staying in your home for long or do not know where you career is going then reconsider buying a home. 

 

5.You Need More Space

Everyone needs space. If you are thinking about starting a family, you might want to consider expanding your space. Having an extra room can make a enormous difference. 

 

6.You Have Considered The Cost Of Homeownership

Being a homeowner goes far beyond monthly payments. Here are some costs of owning a home:

  • Insurance: Legally you are not required to carry homeowner’s insurance, unlike car insurance. Mortgage lenders require you to have adequate insurance as one of the conditions of the loan. Homeowners pay on average $100 a month for homeowners’ insurance. 
  • Property Taxes: No matter where you live you must pay property taxes. Property taxes go to your local governments and pays for fire department public schools, ect. Property tax is calculated by local government as a percentage of your home’s value. The more your home is worth, the more you’ll pay.
  • Closing Costs: Closing costs are expenses you pay to close on your loan one-time only. Usually you can expect to pay between 3% to 6% of your total loan value. Closing costs may include title insurance, lender fees, attorney fees and more.
  • Utilities: Owning a home is different from renting one. Your landlord might cover some of your utilities when you rent but when you own your home you have extra expenses. You need to make sure you can cover your water, trash collection, electricity, and sewage bills every month. 

 

10 Questions to Ask Your Real Estate Agent Before Hiring Them

 

  1. Years of Experience – How long have you been a licensed agent?
    • Knowing the years of experience of your Real Estate Agent is important because it gives you an insight to their track record. Agents that have renewed their licenses multiple times usually have a higher and more consistent rate of closing deals.
  2. What’s your specialty? Is your specialty commercial or residential?
    • Knowing the difference between Real Estate Agent specialties can help you determine which agent is right for you. Residential Real Estate Agents focus on single family homes and one to four-unit rental residences. Commercial Real Estate Agents focus on business properties, anything with five or more units.
  3. Are you full time or part time?
    • Is your realtor part time or full time? If your realtor is part time, they may not have time to focus on your wants and needs. Your realtor needs to know the real estate market. The real estate market can be demanding and time consuming. A Real Estate Agent that is full time has more time to focus on your needs. Full time realtors also have more experience since their time allows them to work more hours. 
  4. Do you work alone or with a team?
    • Hiring a realtor that works with a team or works solo comes down to what you prefer. If you prefer working with one realtor, it could provide less stress and less people you have to communicate with. If you prefer working with a team of agents, you will have more people to communicate with. 
  5. How many homes did you close in the past year?
    • You should know how many homes your realtor has sold in the past year. Ask if you can see a listing from a past transaction. It can provide comfort to see if the realtor has a high closing rate. It also helps to know how many homes similar to your own they have sold. Experience plays a factor in the number of homes that your realtor has closed.
  6. How long does it typically take buyers you’ve worked with to find and purchase a home?
    • The time it takes to find and buy a house is different for each client. On average a home buyer can spend a few weeks or months to pick and close on a home.
  7. How do you determine what homes match my interest?
    • Your realtor should ask you what you are looking for. Your realtor should know what area you want to live in, the budget and specifics that you are looking for in a home. Knowing that information allows your realtor to find the right home for you.
  8. How will you keep in contact with me during the buying process?
    • There are many ways for a realtor to contact you during the buying process. It is important to have parameters set up with your realtor in terms of communication. Providing your primary contact information to help contacting you is easy.
  9. How often will you contact me during the buying process?
    • There are many ways for a realtor to contact you during the buying process. You can ask your realtor to provide weekly or daily updates. Communicating with your realtor in the beginning of the buying process and telling them how and when you want to be updated is important.
  10. What percentage of your business is home buyers?
    • Knowing the percentage of your realtor’s business is important because you want to know if they are working with home buyers like yourself. To find this information you can ask you realtor or search via internet for your realtor’s statistics.

What to Expect When Buying a Home

How do you navigate the home-buying process? Nancy walks you thru her GPS system that guides you along the way.