If you’re thinking of buying a house for the first time, you’re probably thinking if now is the right time to do so. There’s no definite answer, as the right one greatly depends on your personal finances and situation. The following questions can help you determine if it is the right time to own a home.
What can you expect from owning?
Buying a house comes with both risks and responsibilities. You need to budget for things like mortgage, property taxes, homeowner’s insurance, repair and maintenance, and utility bills. Many homeowners and financial advisors, however, agree that the benefits outweigh the risks. This is because your mortgage can help you build your own equity and gain tax benefits.
As a first-time buyer, it is important to be aware of the associated costs:
- Upfront costs. These include the down payment, closing costs, and other applicable fees needed to buy the home.
- Ongoing costs. These refer to the continued cost of living in the house you bought, such as the mortgage, insurance, fees, and routine repairs.
- Renovations and large repairs. Over time, homes will require major repairs like roof replacement or major house repairs and renovations.
Are you qualified to own a house?
City Creek Mortgage and other mortgage lenders in Salt Lake City note that this depends on your finances. It is advisable to know where you stand financially by knowing your credit score. A higher score makes you an attractive borrower, which can also help you get the lowest rates. You also have to consider how much down payment you are willing to pay. You can get in touch with a mortgage company or a lending institution to get pre-qualified.
Is it the right time to buy?
In general, your timing is right if you have enough finances and if you are ready to settle down in one place. If you are currently renting and are financially capable to fund a new home purchase, it is a good time to buy. Be sure to work with reliable people (mortgage lender and real estate professional) who can guide you throughout the process, though.
Do your homework and get in touch with the right professionals to learn more about your options. You can also dedicate your time to boosting your credit score or making yourself an attractive borrower.