3 Questions to Ask Yourself Before Buying a Home - Atlanta Mortgage Lender
You’ve been renting for years and you finally decide that you’re ready to take the plunge and hit the market as you plan on buying your first home.
First, congratulations! Second, are you sure you’re ready?
As an Atlanta mortgage lender serving Newnan, Fayetteville and the surrounding areas, I have worked with several clients who are going through the home buying process for the very first time. Many of them have approached me without realizing how much work and money it takes to own a home. I have created a list of three questions you should ask yourself before you decide that you are going to begin your house hunt.
1. Are you financially stable?
This seems obvious at first, but it’s the most important question to ask yourself. Take a step back, evaluate and decide if you are truly ready to take on the financial commitment of owning a home. If you are already struggling to pay off your car loan, school loan, credit card debt and any other debt you may have, it may not be the best time to purchase a home.
It’s important that you plan properly and ensure that you can afford to pay a monthly mortgage in addition to a down payment for a home, not to mention associated costs such as inspections, closing expenses, and more.
2. Do you plan on moving soon?
If the answer is yes, you may want to reconsider buying. If the answer is no, then house-hunt away!
While it’s tough to predict the future, if you plan on staying in the area for at least five years then it makes sense to buy a home if you can afford to do so. Per an article on Time.com, it’s common to lose approximately 6% when selling a home, and by the time your home appreciates it could take up to five years just to break even.
3. Are you buying for the right reasons?
Are you buying a home for the sake of owning a home or do you truly need it? When it comes to the real estate market, prices and rates are constantly fluctuating. If you don’t know what you are doing and plan on buying a home just to say that you have one, you could quickly find yourself in over your head.
On the other hand, if you are starting a family or flip houses for a living (for example), and prices are affordable, it’s a much better idea to buy for these reasons. Consider what interest rates are, how your current market has performed as of late and what the forecasts are, and how much you can afford to see if it makes sense to enter the market.
Once you ask yourself these three simple questions, you can then move onto the next stage in the home buying process and speak with an Atlanta mortgage lender such as myself. After all, getting pre-approved for a mortgage is crucial for making an offer on a home, and many sellers will only negotiate with those who have been pre-approved!
For more on how I can help you gain the advantage you need, contact me today!