Preparing for a journey brings both excitement and jitters, much like the homebuying adventure. Amidst market factors like mortgage rates and home availability, remember you're at the helm! Instead of predicting market shifts, concentrate on what's in your control. Ask yourself key questions to determine if you're ready to embark on your homebuying voyage.
- Is your employment situation steady?
First up on your checklist should be an assessment of your job stability. Purchasing a home is a major commitment, and signing a home loan is like promising to maintain a garden for years to come. Knowing you have a stable job and consistent income can help keep those financial jitters at bay. As NerdWallet explains:
“A mortgage is a big commitment . . . Wait until your employment is stable before thinking about buying a house.”
- Have you crunched your affordability numbers?
Before you start scrolling through beautiful homes on property websites, ensure you've worked out your affordability figures. Have a chat with a trusted lender who can walk you through the financial maze. They can guide you through the pre-approval process, explain how much you can borrow, give you an idea about current mortgage rates and estimated monthly payments, inform you about expected closing costs, and much more. A great tool to utilize are the mortgage calculators provided by Evergreen.
The good news? You might discover that the finish line is closer than you think! You don’t necessarily need a huge 20% down payment, unless your lender or loan type specifies. As Down Payment Resource points out:
“A 20% down payment on a home is great, but . . . Many mortgages require no more than 3% to 5% of the purchase price as a down payment. Plus, there are loans and grants that may help cover these costs. Search for down payment assistance in your area, and discuss your results with your mortgage lender . . .” Still need help crunching the numbers? Contact your Evergreen partner.
- Are you planning a long stay?
Don't forget to factor in your expected duration of stay when making the home buying decision. Building equity in your home through loan repayment and home price appreciation takes time. If you're itching for a change of scenery in a year or two, it might not make financial sense to buy right now. As a recent article from CNET explains:
“Buying a home is a good idea if you’re planning to stay put for at least three years. Home values typically increase between 2% and 5% annually, so you could end up paying more in closing costs than you’d earn in proceeds if you sell after only a year or two.”
So, pull out your crystal ball and ponder your future. If a job relocation or a shift closer to loved ones is on the horizon, that's something to factor into your decision.
- Do you have a homebuying dream team?
Above all, ensure you've assembled your all-star team of real estate professionals. If not, your first step should be finding a local agent and lender at Evergreen who has your back.
Wrapping it up
If you're pondering whether you're ready to dive into the homebuying adventure, these questions can serve as your compass. But remember, the most reliable guide on this journey will be your trusted Evergreen partner.
Contact your Evergreen partner today!
Source: Keeping Current Matters
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