Buying a home is one of the biggest decisions you will ever make. Perhaps you have rented your entire life but now you’re rethinking whether it’s the right decision.
Is it time to contact a mortgage company in Coral Springs and take the steps to buy a home?
You know there are lots of perks to being a homeowner, like having full control over your space, having stability, building equity, and benefiting from a potential rise in home values.
To help make this decision easier, we at Ace Mortgage have come up with a list of questions to ask yourself.
Can You Afford To Buy?
Everybody wants to be a homeowner, but not everyone is in a position to buy a home. Even if you have a stable income, it may not be the right time to buy a home if it will significantly tighten your budget, impairing your ability to save for other goals and handle financial emergencies. Additionally, if you don’t give a sufficient down payment, you can end up paying for private mortgage insurance, which can be costly.
The best time to buy is when you are confident that you’re in a good financial position. This will look different for everybody but in general, it means that you have a stable stream of income, your debts are almost or completely paid off, your credit score is high, and you have at least 20 percent for the down payment. At Ace Mortgage, we’ll help you with your home financing in Coral Springs by finding a mortgage loan that perfectly fits your needs.
How Long Will You Live There?
It should go without saying but if you don’t plan on staying in that area for very long, don’t consider buying a home. It will not make financial sense if you plan to move out in three years or less. You are less likely to benefit from a potential rise in value the sooner you move out. Furthermore, a home comes with several steep expenses, such as mortgage origination fees, and title insurance. Not only does it make sense to cover these expenses on a home you plan to live in for several years, but they can be paid off over the length of time you will be living in the house. It makes the most fiscal sense to live in the home for at least five years before moving out.
Can I Afford Unexpected Expenses?
As you know, the down payment is the largest upfront expense towards your home, but it is by no means the only expense. We already mentioned large one-time fees you have to make as a homeowner, such as title insurance, mortgage origination fees, and broker fees. You must also consider upkeep and costly maintenance, not to mention unforeseen expenses. Only buy if you are confident that you are in a financial position to take on these responsibilities.
Will Your Home’s Value Increase In The Next Few Years?
Your home is an investment, so it’s natural to want its value to increase over the years. Although this is a possibility, it isn’t always the case. Many factors play into its value, and you can contribute to it by maintaining your home’s curb appeal. However, there are uncontrollable factors, like the local economy. Ask yourself if the home’s value does not increase over the next several years, will it be a worthwhile investment? The good news is you can gauge whether the value will increase and by how much if you look at the average year-over-year increase in property values within the market area.
What Does Your Gut Say?
You will hear your home described with many financial terms. People often say the home is an investment, or the home is a savings account that you live in. Buying a home can also be an exciting and completely emotional decision. It can become a source of deep pride and satisfaction that goes beyond the financial transaction. As a result, it’s important to listen to your gut as much as your wallet. Make sure this is a decision you will feel good about for many years.