Are you having a difficult time deciding whether or not now is the right time to buy a new home? Purchasing a home is a major life decision — one that can take months of research and planning. With the fast-paced lifestyle most of us live, and the comfort of being accustomed to your current home, it can be hard to gauge when is the right time to move.
If you fit into any of the following categories then you may be ready to purchase a new home:
1. You just hit a major life milestone.
Have you recently gotten engaged or married? Is your family growing with the addition of a child? Maybe you have landed your dream job or received a promotion and need to relocate to a new area.
If you’ve reached any of these life milestones, you are likely ready to purchase a new home. Any of these long-term commitments are good indicators that you need a more permanent space to complement your new lifestyle. While you may want to rent in the beginning stages of these major life milestones, homeownership is on the near horizon. Now is the perfect time to begin researching and educating yourself in preparation for the next big step in your life.
2. You're a savvy saver with good credit.
Having a sound savings plan is the cornerstone of long-term financial stability. Perhaps you make regular contributions to a retirement plan, have an established emergency fund and are tucking away a little extra in a special "big purchase" account. If so, you are well on your way to being ready for homeownership. A good rule of thumb is to have 20% of the total cost ready for a down payment.
You will most likely need a mortgage to purchase your new home, and one key element that lenders look for is a good credit score. It helps them determine the amount of risk they are accepting by extending you a loan. Credit scores can range from 300 to 850 — with anything 720 or above considered "excellent". Many credit card companies offer free credit scores to their cardholders, but there are several ways to get a free or inexpensive copy of your credit report online. If you haven't checked your credit report lately, consider doing so before you start your home search.
4. You weighed the pros and cons of homeownership.
The largest advantage of owning a home over renting is that you are building equity. Equity will grow over time, and can even increase if your home value rises. While equity provides you some financial stability and peace of mind, it can also help with unexpected large expenses, college funding, and in certain instances help fund retirement.
4. You have done your research.
A home purchase will most likely be the biggest purchase of your life, so doing your research is vital. Understanding the buying process will help you feel informed and in control of the experience. Many lenders, realtors, and community institutions such as libraries host free seminars about the home buying process. Consider attending one in your local community next time you hear about one.
5. You want the pride (and responsibility) of owning your own home.
Is some ways, renting is easier than owning. If something breaks, you call the landlord and they fix it. When you own a home, you are responsible for any repairs needed, big or small. The flip side to this is that you are able to make improvements or alternation whenever you desire. Maybe you were eyeing a set of floating shelves at the home improvement store but didn't buy them knowing you can't install the necessary supports in your rental home. Or maybe you always wanted an open kitchen but were stuck with a galley because you weren't able to knock down walls in your apartment. Owning a home will allow you to decorate and express yourself freely.
If one or more of these apply to you, then you may be ready to purchase a new home. Brunswick Crossing offers a variety of homes that will fit most needs and budgets. Tours are available, so what are you waiting for?