It’s a big leap to take from renting to buying a home, although one that could be worth it to secure your financial future.
Should I continue to rent? Or start looking to buy? Here are 5 great questions to ask yourself as you start to consider buying a property.
Do I qualify for a mortgage?
Before you get too caught up in the process, reach out to a lender and make sure you qualify. If you qualify, buying a home might be a great next step. If not, spend some time shoring up your finances so that it is an option in the future. (This may be a perfect time to consider luxury leasing)
Can you afford the closing costs?
You saved up enough for the down payment, congratulations! But be aware, there are more upfront costs involved. Closing costs take on about 3% of the amount you are buying the home for.
Can you afford the neighborhood?
When considering the overall cost of home ownership, the cost of insurance and property taxes will vary. You can check with your local tax office and confirm what those costs will be and if you can afford them.
Are you up for the maintenance?
One major perk of renting is that your landlord is usually responsible for the maintenance of the unit. Remember, maintenance can be as costly as it is time consuming. Set aside about 1% of your home’s cost for unexpected maintenance issues.
Are you comfortable with some market fluctuation?
Your home may not appreciate as much in value as you hoped, or as soon as you would like. If you feel unsure about weathering the ups and downs of the market it might not be the right time. However, looking at where the market is now you can see the value in home ownership. Read one of our previous blogs on why it is a great time to buy!
When it comes to buying a home it is important to ask yourself these questions. Our team at Corken and Company would love to help you navigate this process and make sure you are ready to buy. Connect with us today!
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