You may be considering purchasing a new home for you or your family. But how do you know if now is the right time? A Home Avenue flat-fee realtor can sit down with you to discuss all the options available to you through flat-fee realty. You may also be able to take advantage of our cash-back rebate discounts that put money back into your pocket when you purchase a home.
Your Income-to-Debt Ratio is High
When you apply for a mortgage, mortgage lenders will review your credit history and consider your current debt levels from student debt, credit card debt, auto loans, and other forms of debt.
You should also evaluate your own debt levels before taking on the responsibility of home ownership.
You Understand The Depth of Our Investment
Owning a home comes with many more responsibilities than just paying a monthly mortgage. A few of the additional costs to take into account include utilities (Ex; gas, electric, water), cable, internet, and garbage.
Buying a home also comes with transaction costs, repairs, and property insurance. It’s vital that before you decide to pay off student loans and buy a home, you understand how much it costs to buy a home!
You Plan to Stay in the Area
If you have a stable job in a city you love, purchasing a home is worthwhile. On the other hand, if you are unsure of where your career will take you in the next five years, reconsider making your purchase. Use 5 years as a benchmark.
Experts say it takes at least five years before most will break even on a house. For the first few years of home ownership, you’ll be paying mostly interest and not the principal on the home.
Your Home Will Increase in Value
An immediate benefit of purchasing a home can be the additional value gained through appreciation. How do you know that your home will increase in value? There are four signs:
1. The size of the home
2. The location of the home
3. The average of the homeowners in the neighborhood
4. The Future development of the surrounding area
You Have a High Credit Score
The best mortgages require excellent credit scores. However, if your credit score is below 740, you may want to wait on purchasing a home. There are free resources you can utilize to check on your credit score such as Credit Karma, Credit Wise, and myFICO.
You Have Money in Savings
Experts advise having an emergency fund with about three to six months’ worth of income.
In addition, take into account that your emergency fund should increase once you own a home. In the event that you were unable to afford mortgage payments, you would need a backup plan.
You Have a Dependable Source of Income
Some industries mean individuals will have fluctuating sources of income. Commission-based industries often entail fluctuating salaries. Therefore, it’s important to have a steady source of income before you purchase a home. Many mortgage products will require this as a condition to get approved for a mortgage as well.
Minnesota’s Most Trusted Flat-Fee Realtor
Selling your house can be easy with help from Home Avenue. We provide complete real estate service for homeowners across Minnesota and here in the Twin Cities Metro Area. We can help you list your home on local and national sites. With Home Avenue, your property will get ultimate exposure in all of Minnesota and national markets. You can also take advantage of our cash-back rebate program. To schedule an initial consultation with one of our agents, contact us at 952-929-7355, or you can message us at firstname.lastname@example.org.