So, you’ve decided it is the right time to buy a home! You’ve seen something on Facebook or a house that you love or you’re just ready to fire your landlord and go shopping for a house. Whoa! Buying a home before you are ready can lead to financial disaster for you and your family. Following are 5 things you should consider:
1. Finances. Have a heart to heart with yourself and your spouse. A consistent income and a substantial down payment improve your chances of being a successful homeowner. No one wants to be house poor!
2.Your Life Stage. If you think there is a chance of your moving in the next 1 to 2 years, purchasing a home may not be the best option for you. The process of buying and selling a home is expensive. Make sure you feel confident that you’ll be in the area for the next five to seven years.
3.Know the housing market. Can you tell if a home is a good value? Will it go up in value? What is going on in the community? (Hint: If you are not an expert in homes and the market, then hire an expert…aka Realtor!)
4.The RIGHT lender. If you have enough cash to make the purchase and are choosing not to borrow, then you can skip to #5. Otherwise, a lender is vital to a successful and less stressful home buying process.
5. The RIGHT real estate agent. Approximately 20% of the agents in any given market do 80% of the sales…you should look for one of these.
Actually, this list could be shortened to 1 thing to Consider – the RIGHT real estate agent. The right agent will ask questions and encourage you to think about questions 1 and 2. The RIGHT real estate agent will be the expert who guides you through the housing market while keeping answers to questions 1 and 2 in mind. The RIGHT real estate agent can also provide a list of excellent, local lenders for you to interview. The RIGHT real estate agent will be with you whether you’re ready to purchase a home today, next month, 6 months from now or 3 years from now!