Are you ready?

How do you know if your ready to buy? Here are a few questions that can help you in your preparation.

Do you have a monthly housing expense budget? This means sitting down reviewing your current income, identifying your current expenses, and setting a plan in place for your future housing costs. This is a key first step in determining what you can afford.

Do you plan on living in the same area for a few years? Buying is more long term than a month-to-month rent, the advantages are stability, ownership, etc. But if you’re planning on moving again shortly the sales costs should be considered.

What are the property taxes, insurance and utility costs. These are those “unknown” monthly items beyond the space rent, and mortgage that need to be considered. Taxes and insurance we can estimate up front, but we can get those nailed down prior to needing to release contingencies. Taxes we can get from public record/tax rolls and insurance the buyer can get quotes based on the specific home being purchased.

Utilities are going to vary depending on the buyer’s preferences, and the age of the home. Older homes may not have been updated for more energy efficiency and thus have higher costs. It never hurts to walk around meet potential neighbors and ask them about their utility costs.

The big one that buyers struggle with is can I afford this payment? It’s not a simple answer, but one that a lender can help a buyer through. A lender can provide a good monthly estimated housing cost and how that can fit into your current monthly budget. At the same time we can project the investment value of the home over time.

We work with many first-time home buyers and would be glad to help them address each of these concerns.