According to figures from the U.S. National Association of Realtors, about 5,250,000 existing homes have been sold in 2015 alone. New trends in home buying have enabled more people to buy their homes.
Are you ready to join America’s increasing number of homeowners? Here are some ways on how to determine if you’re ready to stop renting and start purchasing your own real estate property. Consider these suggestions if you’re planning to buy a house in St. Louis:
1. First, your finances should be in order.
This doesn’t mean that you need to be 100% debt-free before you can buy a real estate property. There are people who take the home buying route even if they have existing loans on their cars. If you’re still financially unstable or if you have existing huge debts being paid, it’s not the right time to add another big financial responsibility. For instance, if you’re forced to rely on plastic because you don’t have enough dough to make ends meet, stay away from real estate purchases for now.
2. Second, you should have enough money saved for a down payment.
You may not have a lot of debt now but if you don’t have enough savings for a down payment, it’s not going to work either. Home financing has upfront costs that you need to cover before you can even apply for a mortgage. Moreover, real estate purchase has several unforeseen costs.
3. Third, make sure you have separate savings for health and other emergencies.
Savings can mean a lot of things. Some savings can be in the form of tangible investments, like gold and silver bullion, while others can come in the form of a business investment. When you’re planning to buy a house, your money savings should be liquid, which means they should be in cash. Make sure that you have enough money saved strictly for the down payment, hidden costs, and acquisition-related expenses. This means that you should have money saved for emergencies, health-related concerns, and even for rainy days.
4. Fourth, you should know where you’ll get the money to pay off your mortgage.
Once you start your mortgage monthly payments, there’s no turning back. Having a steady stream of income is important. Of course, people deal with job security all the time. This is why it’s important to have money saved for home acquisition purposes before you even attempt to buy one. This way, in cases of a job loss, you can still make your mortgage payments.
Buying your first home can be daunting but definitely not impossible for people who like to plan ahead. It’s a huge and long-term financial responsibility so make sure you’re ready before you even dip your feet into the waters.