Buying your first home can be an exciting time, full of unique choices and new decisions. If you are in the market for a residential property, consider that there are several key factors that should be evaluated before you proceed.
The right time to buy a home is different for everyone, and should be determined by taking an in-depth look at your circumstances. This can help you realize the many long-term investment benefits of buying over renting while gaining important insight into your financial profile. Once you have the complete picture, you can then make a sound decision on whether you’re ready to buy your first home.
Make Absolutely Certain that the Time is Right for You
Another aspect of knowing when you’re ready to buy a home is if you are in a good position to make a commitment and settle down. This can be largely based on the stage of your career and your family life. If you are established in a stable profession with room for advancement, this is an indication that you can handle monthly homeowner expenses. Also, if you are at the onset of starting a family and dream of a nice place to raise children, you could be set to embark on your home buying adventure.
Starting Off Right is Key
The first factor to look at is if you can afford a significant down payment. Some mortgage lenders are willing to negotiate an FHA (Federal Housing Authority) loan for as little as 3.5% of the home price. While this is attractive in the short-term, there are benefits to making a larger initial investment. Ideally, a 20% down payment allows you to negotiate reasonable monthly payments while avoiding additional fees. Also, a sizable down payment gives you access to a greater variety of lenders so you can shop around for the best deal.
Make Sure To Look at the Big Picture
The next factor to consider is if you can comfortably afford a monthly mortgage payment. If you’re shopping for new homes in Utah County, one approach is to work with a builder such as McArthur Homes who can refer you to a preferred mortgage consultant. This allows you to look at several different scenarios based on how much of a down payment you can make, the price of the home and the interest rate you qualify for. Then, you can choose an optimal set of conditions and move forward.
Consider All Costs Involved in Buying a New Home
Next, it is important to identify all of the monthly expenses you will incur by owning a home in addition to your regular bills. These include obvious costs such as mortgage payment as well as utilities, groceries and other routine expenses. Plus, there are also less-obvious fees you should be aware of such as homeowners association (HOA) fees, insurance and property taxes.
Buying a house is something that should be done when the time is right. Contact us to learn more about how to determine if now is the right time for you to purchase a home. The professionals at McArthur Homes are always willing to answer any questions.
