Most people feel a lot of pressure around buying a home, but this doesn’t mean you have to jump into it if you’re not ready. If you’re not sure if you should buy a home yet, these tips from Home Key Title can help.
Should You Wait to Buy a Home?
If you’ve decided that you want to buy a home, you will need to ensure you’re actually ready to take this step. Before you make your final decision, check out this information that can help you make the best decision possible.
When purchasing a home, be sure to purchase title insurance in Shrewsbury to protect your investment. Contact the title insurance experts at Home Key Title at (508) 475- 5502 to learn more about the importance of title insurance.
Can You Make a Downpayment?
Before deciding you’re going to buy a home, you first want to be sure you have enough saved up to make a downpayment. This will usually require a cash payment equal to 20% of the property’s asking price. If you don’t have this amount saved up, then hold off on buying a home right now. Not having the amount needed for the downpayment doesn’t necessarily mean you’ll be turned away, but you will have to pay for private mortgage insurance. This is meant to protect your lender in case you default on your payments. It can really add up and will result in you paying more than expected for your home. Also, don’t wipe out your savings to make a downpayment. You need to save up for the downpayment separately and still have a healthy savings account in case of emergencies.
Do You Have Debts That Need to Be Paid?
Next up, be sure you have no outstanding debts that you need to pay off. If you do, it’s best to work on paying these off before applying for a home loan. Having unpaid debts, whether it’s student loans or credit card debt, can take a toll on your credit score. If your credit score is less than great, you may get home loan offers that aren’t quite what you wanted. Your offers may also have higher interest rates than what you planned for. Rather than accepting offers you don’t love, focus on paying off your debts and improving your credit score. Once this is done, you’ll get better home loan offers and be able to save up money more quickly since you won’t be spending a portion of your income on paying off debt.
Is Your Income Secure?
Next, you’ll need to have a stable and secure income. Typically, this will look like a stable job that you’ve been receiving a paycheck from for a while. If you’ve just started a new job or aren’t feeling like you’re going to stay at the same company for much longer, you’re better off waiting on buying a home. Even if you have savings, making mortgage payments can be tough while you’re in between jobs. It’s best to avoid this stress by waiting until you feel like you have job security.
Whether you’re buying or selling a home, don’t forget about the importance of title insurance in Shrewsbury at closing. To learn more about title insurance, contact the title insurance experts at Home Key Title. Give them a call at (508) 475- 5502 to learn more.
Do You Plan to Move Soon?
Home loans will usually take between 15 and 30 years to pay off, so they do require commitment from the buyer. Before you decide you’re ready to buy a home, ask yourself where you see yourself in five years. Ideally, you should see yourself still living in the same home. If you don’t think you want to stick around the same town for the next few years, then buying a home now isn’t a good investment. Not only will you be paying back a large loan, but moving, closing costs, and other costs associated with buying a home can really add up. If you plan to move in the next few years, then this can result in financial losses for you.
Is This Something You Want to Do?
Finally, only buy a home if this is what you want. If you’re feeling pressured into doing this just because you can afford it, you may not be ready to take this step. You may feel limited or tied down by doing this, so it’s best to wait until you’re sure you’re doing what’s right for you.