Buying a house is one of the biggest financial decisions you can make, but how can you be sure that you are ready to buy? Making a decision can be difficult, but this simple home buyer’s guide can help you make a confident choice.
If you love browsing real estate listings, and daydreaming about home decor, chances are you’ve considered buying a house of your own. If you are dreaming of finding your perfect home, you are not alone.
According to Statista, over 5.3 million American homes were sold in the year 2019 alone. In addition to that figure, new homes are popping up every day.
Along with all of the consideration and planning, buying a house can be expensive and stressful. Before you enter the market, its best to be sure that you are ready to take on the responsibility of being a homeowner. However, if you are prepared, house hunting can be enjoyable. Follow these tips to make sure you are ready to take the plunge.
Are your finances in order?
Debt can be the most significant indicator of your financial health. If you are getting by on a credit card or still paying off substantial student loans, buying a house might not be right for you.
What about your credit score? The bank will use this score to determine how well you handle your credit. If you are planning on a home loan or a mortgage, a low credit score will likely be denied by lenders.
Do you have enough saved for a down payment?
It’s true that in today’s market, a house can be purchased for as little as 3.5 percent down. On a mid or entry-level home, that might seem quite affordable.
However, many first-time buyers forget about the closing costs, taxes and insurance fees. Don’t forget the inevitable repairs and furnishings. These costs can quickly eat into your savings, so be sure to budget before handing over that down payment.
Are you ready to settle in one place?
Unless you are planning to flip the house, it is essential to think of it as a long-term investment. If your career is on track and you see yourself sticking around for a while, then you are in good shape. If you buy a home and sell it in only a few years, the increased value might not even cover the price you paid.
Most experts suggest staying in a new home for at least five years. If you can’t commit to that amount of time, maybe homeownership isn’t for you.
How are you with repairs?
When you forgo the landlord, you should learn to fix problems yourself. Or pay for them.
If you can make repairs yourself, you will save a lot of money and keep your savings in the bank. Little surprises like a leaky faucet or a malfunctioning refrigerator are common. When you become a homeowner, you must be ready for these things, both mentally and financially.
Always keep in mind that the structure itself is a diminishing asset. Only the land will appreciate over time.
If you can check all these boxes, then home ownership may be in your future.
What about condos?
If you want the best of both worlds, here are some first-time condo buyer tips:
- Go with experience. Condos are much different than other properties, so always look for experienced agents.
- Know what the association fees are and what they include.
- Always research association rules and rental company reputation.
- Be cautious of buying at the peak of the market. When properties decrease in value, condos are usually affected first.
- If you are buying a condo in Los Angeles, always go for the best view to ensure resale value later.
When is the best time to buy a house in Los Angeles?
Overall, the best time to purchase downtown Los Angeles real estate is in the autumn or winter. Many people are busy during the holidays, so there is less competition in the marketplace. If the predicted trends continue, the market for 2020 will be a great time to buy.
Are you ready to be a homeowner?
Whether you are in the market for a house or a condo, following these tips will ensure you are ready to become a homeowner. Being a homeowner is the dream for most Americans, but being a confident buyer is more important than ever. When you are ready to buy, you can buy with confidence and finally enjoy the house of your dreams.