Should You Purchase a Home in Columbus Right Now?
For most Americans, purchasing a home will be the largest purchase they make in their life. Purchasing a home is exciting and full of adventure, but it is also a huge life-changing decision that should be made with many considerations beyond dreams and aspirations of having a home.
The answer to whether you should purchase a home right now is not as black and white as many people think. There are several real-life details to consider before making a huge and life-changing purchase.
Here are some important things to consider about the realities of homeownership
The Big Picture
Consider the stage of life you are in and where you hope for your life to go in the near future. This is a big factor in helping you to determine if homeownership is right for you right now. Since no two people or families are in the same exact stage at the same time, this is best looked at with a series of questions you ask yourself.
- -What do you think your life will look like five years from now?
- -Will you have more family members than you do right now?
- -Do you see yourself still loving the current location you wish to buy in for the next five or more years?
- -How is your career going? What are your plans for your job? Would they require a move?
- -Is the home in a good school district and within the best schools in the district if you plan to bring kids into the family?
A home that is ideal for you right now may not work for you in the near and not-so-far-off future. This is why it is important to think of your big life picture and where you see yourself going in the next five years to help you determine if tying yourself to a major and stationary financial commitment is right for you.
This of course is the first place that people turn when they consider buying a home. When you buy something, of course, you will first ask yourself if you have the money to do so. There are some financial factors that are forgotten or little thought about when it comes to purchasing a home. Some things to think about when considering if you have the financial health to purchase a home include:
-Down Payment: There are some loans that will allow for a lower down payment, a borrowed down payment from a relative, or no down payment at all, but these loans have other cost factors to consider to make up for the risk of lending to someone with a lower or no down payment. So it is good to ask how much money you see yourself being able to put down on a home or if you can afford the extra costs of things like required mortgage insurance on loans with lower down payments.
-Credit: your credit score and report of history will be large determining factors in qualifying for a loan. Make sure that your score is considered high enough and your report does not have red flags. If it needs work you will need to take the time to build it up to receive the best loan terms possible.
-Being House Poor: the term house poor refers to homeowners that are barely making ends meet because their mortgage payment takes over most of their income and there is little beyond that to live off of. You do not want to get yourself into a situation where all you can do is pay the monthly mortgage bill and groceries and utilities. This puts many homeowners in a stressful and often unhappy lifestyle that feels like they have little to no freedom. Right now with interest rates, so low many buyers are tempted to purchase a home at the top end of their budget because they want to jump on the opportunity to own dream home, but they forget to think about if they can afford to spend their money on other things in day to day life.
-“Hidden” Costs: nobody really mentions these costs so they are little thought about in a home purchase, but every homeowner will need to pay property taxes and secure a good homeowner’s insurance policy.
Are You Ready to Maintain a Home?
Owning a home is more than just a financial responsibility. In addition to paying the mortgage and utilities is the upkeep of the home. All homes will have maintenance needs, even a newly built one. Are you ready for the time and extra cost of taking care of a home?
For help finding the right home in Columbus and surrounding areas please contact us any time.
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- How to Tell if a Home Will Need Extensive Repairs
- How to Check Out a Neighborhood Before Living There
- Why Lenders Offer Different Mortgage Interest Rates to the Same Applicant