Homeownership is a common goal shared by many, and if you’ve been working towards making that dream a reality, it can be difficult to determine when the time is right. Some people realize that they might be better off waiting on buying a home, and some even come to the conclusion that homeownership just isn’t for them at all. If you’re seriously considering applying for a mortgage loan and taking the first steps towards buying a home, you’ll want to ask yourself the following questions first:
What’s my credit situation?
Unless you’re buying a home in cash, you’ll need good credit in order to qualify for a mortgage loan. Before you decide to move forward with your mortgage loan application, pull your credit report and see where you stand. Even if you have a decent credit score, you’ll want to make sure there aren’t any negative items on your credit report that might stand in your way of getting approved. If you do notice any negative marks on your credit report, take action to fix them by paying off the debts or disputing the items if they’re incorrect. Otherwise, you might have difficulties getting approved for the amount you need, receiving a decent interest rate, or even getting approved at all.
What do I want in a home?
There are so many different things to consider when it comes to buying a home that you can comfortably afford and be happy in. With all the housing types out there (townhouse, single-family home, condo, etc.), sizes, and other considerations, figuring out what you want in a home can be overwhelming. However, it’s important that you know and give yourself enough time to figure out what you really want and need in a home before you make your purchase. If you don’t, you might end up regretting it later on.
When determining what you want in a home, it’s also important to keep the future in mind. You want something that can work for you long-term, and not just your current lifestyle. For example, if you just got married and you live with your spouse in a one-bedroom apartment, you might be content with purchasing a home that’s the same size—or not much bigger. But if you plan on having children, you want to plan accordingly by purchasing a home you can grow into. You don’t want to buy a home that ends up becoming too small and cramped after just a couple years.
Am I ready for the responsibility?
Being a homeowner comes with many rewards, but it also means new responsibilities. For example, think about what happens if something breaks. Not only do you have to pay for it yourself, but you have to take care of fixing it yourself, or hiring someone to fix it. When you’re renting, you don’t have these responsibilities, and the landlord takes care of maintenance and repairs. Overall, owning a home can take up a lot of your free time, and if it’s not something you’re prepared for just yet, you may want to wait.
If you need cash in order to buy a home, Peachtree Financial Solutions may be able to help if you’re receiving long-term payments from an annuity or structured settlement. We can purchase some or all of your future payments and provide you with a lump sum of cash, which can be used towards your down payment. Contact Peachtree Financial Solutions today to learn more about selling future payments for a lump sum of cash.
Nothing above is meant to provide financial, tax, or legal advice. You should meet with appropriate professionals for such services.