Are You Ready to Buy? Four Factors You Should Consider

You’ve probably heard it before: purchasing a home is a solid investment option, especially if you consider the fact that, aside from general variations in the market, investing in real estate tends to be financially beneficial over long periods of time. The problem, however, is that—as the saying goes—“It takes money to make money.”

As with anything, there’s always a right time to shop for certain things, but when deciding whether you’re in a smart position to buy a home, you may want to consider the following factors.

FINANCIAL STABILITY: While you may be currently killing it at work, it’s important to take some time to consider the actual long-term stability of your present income level. It can be exciting to be making a comfortable amount of money, especially if you’re in your 20’s; however, if you are unsure about whether your finances will be a constant over the next few years, it might be wise to wait until your funding is a bit more secure. Whether that means holding off for a few months or a few years, it will be worth it if you are hoping to avoid the pain of a future foreclosure.

CREDIT SCORE: Sure, you may still be able to take out a loan if your credit is somewhat less than stellar, but you’ll pay with an increased interest rate. Plain and simple, a few simple points in either direction can dictate whether you’ll be spending or saving a few thousand dollars on your loan, so it’s generally wise to wait until your credit score is where you want it before you buy.

CURRENT SITUATION: Although kids might not be in the picture or even a spouse, for that matter, life is clearly variable, which means it’s wise to plan for the unexpected. While there is no one-size-fits-all advice when it comes to purchasing a home that fits into your current reality, one of the most important aspects of assessing what you want out of a home is paying close attention to what you want out of your life. From selecting a property within a good school district or something within walking distance to trendy shops and restaurants, make sure you enter the buying process with a bit of a plan in place.

THE MARKET: Having an understanding of what real estate is doing in your area is extremely important if you’re considering a home purchase. Conducting research on your own about what housing prices are doing is a worthwhile venture; however, it’s also wise to use the services of an experienced Realtor who can provide you with details and expertise that you simply cannot find on your own. If prices have drastically gone down in your area, they can help you move quickly or, if they’re at an all-time high, can help you make a choice that works for your budget.

FINAL WORD

Purchasing a home is most likely going to be one of the largest financial transactions you ever make, so the decision is clearly a personal choice that may take a bit of reflection and honesty about what your life looks like now and what it may look like in the near future.

If you’d like some assistance or even simple advice regarding what will work best for you, please feel free to call me. I’d love to help you along the way.

Pam Evans | Hello Pam Evans Real Estate | www.HelloPamEvans.com | 678-778-6551