Buying a house today in Florida has become somewhat difficult since the prices are getting higher. Miami Florida is considered one of the most expensive cities in the United States by many realtors as the price of properties is rising every year.
Buying a new home can be a good financial decision!
But is it the right option for you right now?
This is happening all over the United States right now: many people innocently reading stories in social media, where many buyer publish photos of newly purchased homes.
But as your mother always said, just because everyone else does, doesn’t that mean you should do? There are certainly advantages and disadvantages to becoming a homeowner, and coming across a single list of a house for sale, with the perfect open kitchen and fenced yard can make you think of nothing else. But then you realize that you’d rather save money on a travel adventure and that this dream house doesn’t offer the services you like in your apartment, such as a gym, a swimming pool and a dog house.
Don’t rush into the possibility and assume that you should buy a house when you’re ready. Here are some tips: to help you define if you are ready to buy?
Ask yourself the following questions that reveal whether or not you’re ready to buy a home.
1- Do you make enough money?
You can think about making enough money to buy a home, but first try our mortgage calculator free tool to see how much it would really cost you, a mortgage calculator can be helpful here. Initial and ongoing money is needed, “Initial money includes enough money for the down payment and closing costs and enough money remaining for an emergency fund. “The buyer’s salary should be enough to pay interest and principal on the mortgage, insurance costs, homeowner’s insurance and taxes. According to many financial planners, these costs should be less than 30% of your gross income.
2- Do you have too many debts?
Suppose you earn enough money to buy a home and make monthly mortgage payments. You should also consider any debt you may have. Tip: If all your credit cards are exhausted, you may want to check these bills before entering the property. Lenders generally want your total debt (which includes your potential mortgage payments) to be less than 45% of your gross income. “Review your spending habits carefully and change them to improve your chances of getting a mortgage.
3- Do You Have Enough Savings?
If you have managed to save enough money for the down payment. But you need more than that. What if your house needs an emergency repair? Do you have the money to pay for it, or would you make an amazing amount of debt? The air conditioning can fail during a holiday weekend or a channel can be damaged. And then there are the costs, which are not necessarily unpredictable, but cannot be taken into account. A home buyer doesn’t just need money to pay the closing costs and mortgage payments for the first few months. You may need money to buy and decorate your new home with beautiful furniture and a comfortable bed. You need money to pay the property tax in advance. As you can see, you don’t want to simply exhaust your savings by paying the deposit.
4- Have you been on the job long enough?
Most mortgage banks like it when you work in the same job for at least two years. In fact, they calculate your average income based on the development of your career over the last 24 months. A job that reflects stability for a long time and a job change or income gap are signs of insecurity. A major change in your career, such as moving from a salary to a commission-based salary, can vary your income and increase uncertainty about your willingness to buy a home. Even if you qualify for the expected income and do not earn that money in your new position.
5- Do you have low (or no) credit?
A poor credit rating indicates some kind of financial problem, such as non-payment of one or two bills, filing for bankruptcy or too much debt. “Check your credit report carefully before you make a purchase decision,” says Moffitt. “A mortgage lender may have questions about payments, loans or other debts and make suggestions that may take time to resolve. If it takes six months to fix the problem, you may not be ready to buy immediately.
6- Having little or no credit history can also be problematic?
“Consider alternative lines of credit. This type of credit is everything: rental history, car purchases, utilities, monthly subscription services and mobile phones. To get a good loan from these companies for 12 months or more.
7- Do you know what kind of house you want to buy?
You may have thought about buying a family home, but you have more options than you think. For example, you can buy a townhouse and earn money by living on one side and renting on the other. Perhaps a condominium or townhouse could be better tailored to your needs – and facilitate the transition to living in an apartment. “Everyone has their own maintenance and responsibility considerations. It’s hard to say “I’m ready to buy” without knowing what any type of home has to offer,” says Moffitt.
8- Are you ready to move?
If you are sure of the above aspects, want to move and you are ready to buy. “Remember if you buy a house and you have to sell it the next year, you run the risk of losing money because the appreciation will not offset the taxes and costs of closing it after the purchase in that short time.” But it’s also sure that you save a lot of money in the long period by buying a house since the money you spend on rent this don’t will back to you wallet.