You should buy a house. But, are you prepared to buy a house?
Investing in purchasing your home is one of the best things you can do for your future. However, doing it too early, or when you really are not prepared may not be the best thing to do.
First, you want to make sure you have strong credit. This can help you get a better interest rate and loan program.
Second, you need a strong employment history, at least 2 years. The bank wants to make sure you have ample income to pay back the loan.
Third, make sure you have enough money saved up for after closing, in the event that something needs repaired shortly after you move in. What you don’t want to do is use up every last penny of your savings, and then a week after closing, something happens, whether it is related to your home, car, etc, that you will need the extra funds for. Make sure you have a safety net.
Finally, if you don’t have to max out your budget on a home, don’t. However, I know especially in this market, it is really difficult to get into a home under $250,000.
One of the greatest house hacks for people is investing in a home, living there for 2 years, and then purchasing a new home. You can rent out your old home, make a little profit on it while the renter is paying your mortgage, and get a new house that may better suit your needs.
Key takeaways: Build your credit. Build your savings. Your first home does not have to be your forever home.
If one of your goals is to purchase a home, let’s connect today. Even if you are not ready to buy at this moment, and maybe not even for another year, connecting with a Realtor like myself can keep you on track and set you up for success for your first home purchase.
–Amber Fleck is a Realtor with Nest Shenandoah Valley. As someone who chose to plant roots in the Valley, Amber loves to welcome people to the area and share all of her favorite hidden gems. Because, ultimately, she believes you should love where you live!