Have you been casually browsing houses for sale lately? When you find yourself daydreaming about buying a home it’s easy to get caught up in the excitement. As much as we absolutely want to help you find a home to buy, we also want to help you make sure it’s the right time for you. We want all our buyers to go into their purchase with confidence.
You’ll need to have enough cash saved up for a down payment. 20% of the purchase price is the rule of thumb (though there are many exceptions) and a good amount to plan for. You’ll also need some savings set aside to pay for necessary repairs as they arise. Having stable, long-term employment (2 years in the same job ideally). In order to qualify for a mortgage, you’ll also need to have a good credit score.
Once you’ve started the process of getting pre-approved with a lender don’t make any major purchases. This includes paying off any large bills unless you’re doing so at the advice of your lender.
Choosing a home that fits your life as it is today while planning for the near future is a necessary balance. This is especially true for a young, and growing family. Buying a home for your children and future children is a reason many people choose to stop renting. But families change in other ways, too.
Maybe you’re preparing for an older family member to join your household – which is something we are seeing on the rise over the past few years in addition to the more common downsizing once the kids go to college. As adult children start their own families buying a home for retirement is a good investment.
One upside of renting is that you have the option to relocate every year or so if you want to. If you’ve found a city, or a neighborhood where you want to stay for at least five years it might be an indication that you’re ready to make the leap to owning property.
There are times in life when renting is a great benefit. It allows you to relocate more freely. It also prevents you from having the burden of paying for repairs – big or small. The other side of that coin is that you’re not building any equity with the money you spend on your home.
If you’re feeling like you want more permanence, and more control over your home renting has probably stopped being a beneficial situation for you. It’s good to really evaluate your options, and decide whether renting or owning is best for you at this time in your life.
If it sounds like we’re describing you and your family it’s probably a good time for you to start looking for property to buy! The Drew Kern Team are experts in the Miami area home market, and we’re here to help you! Give us a call today, let’s get started!