Are You Ready to Buy Your First House?

Real estate st. louis

Buying a house is one of the most financially heavy decisions you may ever make, and you need to be sure you’re ready. Here are a few questions you should ask yourself first before you jump the gun and start looking at a home for sale locally.

Can You Afford It?

Buying a house might seem like an obvious decision if your mortgage payment will be less than the rent you’re already paying, but there are several other costs that you need to factor in, too. Can you afford to pay the closing costs, principal and interest, homeowner’s insurance, property taxes, utilities, and repair costs? These costs can add up much more quickly than you might think, and you need to be ready for them before you even plan on buying a house.

What Are Your Plans For the Future?

A house isn’t just an investment of money, but time as well. If you buy a house, and then decide to sell it and move after three or so years, you probably won’t break even, and you’re at risk of the market. Before you start hunting around and checking out your area’s homes for sale, you need to decide if you’re ready to settle in to your job and your city for at least five to seven years.

Are You Qualified?

Less of a personal question, you need to pragmatically decide if you’re qualified for a loan before buying a house. In order to get the lowest of mortgage rates, you typically need a credit score of around 740. FHA loans are a bit more lenient. Sometimes, lenders will qualify borrowers with a score of 620 for those government-insured loans, but you still need to have your credit in good shape.

Buying a house is a huge deal, and it’s okay if you’re not financially ready. Take your time, and buy when you are. There will always be local houses for sale, ready and waiting for you to purchase. Start when the time is right.

If you have any questions about buying a house, feel free to ask in the comments. Continue. Find out more here.

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