In 2022, 65.8% of Americans were homeowners. It’s a huge step to take from renting to owning, but maybe you’re finally ready to level up and join everyone else.
Even though you’ve worked hard at saving money to purchase a house, you shouldn’t jump straight into things. By taking a moment to consider some important things, you can avoid headaches and heartaches too. And as a result, you can look back on this time with a smile instead of a frown.
Read on for some things you need to think about during the house-buying process.
Make Sure You’re Financially Ready
Just because you have a large sum in your savings account doesn’t necessarily mean you’re ready to buy property. There are a few things you need to figure out to see if you’re in a good financial place to proceed.
First, see what your debt-to-income (DTI) ratio is. In most cases, the ceiling is around 30% to 40% to get a mortgage approval, depending on who you’re getting the loan from.
You’ll also need around 20% of the home’s value to pay for the down payment. Factor in some extra money for fees, things like home insurance, and unexpected costs too.
Understand the Housing Market
There are two possibilities here: it can either be a buyer’s or a seller’s market. Additionally, in the case of a rental marketplace, it can be a tenant’s or a landlord’s market.
You’ll need to do extensive research to see which one it is, and if it’s a buyer’s market, prices probably won’t get any better than they are now.
If you’re thinking of moving to a different city, and are also selling your current house, then you’ll need to understand the housing market in both locations to ensure you don’t lose out.
Working with a real estate agent such as Chinneck Shaw estate & letting agents can be highly beneficial. They’ll have a deep understanding of the housing market and can help you navigate it with ease. Additionally, they’ll be able to take your new house wishlist and sort through what’s available, saving you time and effort. With their expertise on your side, you can rest assured that you’re making the best decisions for your future home.
Similarly, working with estate agents hempstead can provide you with the same level of expertise and convenience. They are well-versed in the local market conditions and can provide valuable insights that can help you make an informed decision. Whether you’re buying or selling, their professional guidance can make the process smoother and more efficient.
Factor in Your Lifestyle
According to eXp Realty a dream home can seem amazing on paper, but it may not be fantastic for your everyday life. For example, a mansion with a huge pool seems dreamy, but in reality, it’ll be a hassle to maintain, and you might only use it once a year because you’re so busy.
Make a list of your must-have things when buying a house and rank them in order of importance. Since you’re not working with an unlimited budget, it’s likely you’ll have to sacrifice a few things on this list.
Good Luck With the House-Buying Process
The home-buying process can feel scary, especially if you’re not familiar with real estate. You’re putting down a large sum of money and making a long-term commitment, after all, so it’s natural to feel uneasy and anxious.
But hopefully, this article’s put you at ease. With this information, plus a reputable real estate agent by your side, you’ll be able to buy your dream house without too much hassle!
If you’re curious about the real estate market, then browse our blog posts to find out more.
