Has all this time spent at home convinced you that your space is too small, that you’re throwing your money away on rent or that you want to have the freedom to do home projects as you please? Well, let’s see if you’re ready for the next step!
First things first, you have to save some money! However, it may be less than you are thinking. Many people still believe that you need a 20% down payment, but that is false! You can purchase a home with as little as 3% down, and in special circumstances, even 0%. There are also many different down payment programs that can help you cover this amount of money. We’ll dive deeper into different programs, but not today! For now, talk to your lender about what will work best for you.
Second, owning a home – or a bigger home comes with responsibility! Lots of things in a home need attention to be maintained or fixed, and trust us, the list never ends. However, don’t let this overwhelm you! Many things are easy to do yourselves – it’s just a learning curve! If you find it’s not your thing, they can always be hired out by contractors.
Are you ready to settle?! When you purchase a home, you want to make sure you are ready to be there for 3-5 years. This is because you want to gain equity into your home before selling. This will take some time, especially if you buy a home in pristine shape that doesn’t allow for “sweat equity”. Lastly, if you sell within 2 years of purchasing, you may be subject to capital gains on any amount of profit made from the home. Of course you can’t always predict the future and life happens, but as a general rule of thumb you should be prepared to stay there a few years.
Have you been pre-approved? Your credit score is a crucial component to getting a mortgage so make sure to check with your lender if you can purchase a home! Ask us if you’re not sure where to go, we work with the best lenders and would love to refer you to them.
Lastly, and perhaps most importantly, don’t forget who your realtors are.