If you are a first time home buyer, it is completely normal the feeling of uncertainty. There are many things to consider, such as location, size of the houses, green areas, and most importantly, the economic impact. So, if you are buying a home for the first time this information will help you choose your future home.
How do you know if you’re ready to buy a home?
Knowing if you are ready to buy a home is not an easy task. Your life will completely change the moment you make that decision. A new home carries many responsibilities, so you must think carefully before acquiring the property. You need to consider some basic aspects such as space, the proximity to your work space, and consider school districts.
However, in addition to the basic things, the most important thing will be resumed in the following aspects. The savings you have accumulated, if you have been in your current job for more than two years, if you have a clear idea about the house you want to buy, and if you can assume the necessary payments. That is, if you have an emergency fund or if you have several sources of income for example.
5 questions to ask yourself when buying your first home?
There are many things you need to consider before buying your first home. You must have a reason to want to take such an important step. On the other hand, you should evaluate if your finances will ask you to acquire a property. So if you are going to buy your new house you should ask yourself the following questions.
Why would you want to have a home? Do I have enough income for my monthly expenses and create an emergency fund? Do I have enough capital for the down payment of my first house? Am I in a position to apply for a mortgage on a new home? Am I ready to change my lifestyle? But don’t worry, here we will answer each of these questions.
Why would I want to own a house?
There are many reasons why you might want your own home. To start, a house offers a safe and stable environment for children or any family members. On the other hand, the money you would normally pay in rent could go to anything else. Having your own home gives you the freedom to decide what it will be like, that is, decorate, modify, and distribute as you wish.
Do I have enough to pay my monthly expenses and create an emergency fund?
This is perhaps one of the most important aspects when you are a first time home buyer. Why buy a home if you can’t financially support the decision? The worst thing you can do is take on such an important purchase if you still have accumulated debts. This, can be very counterproductive.
Do I have enough capital for the down payment of my first house?
Am I ready to buy a home? To start you need to know if you have the initial capital for your first house. In this sense, there is nothing fixed, however, if you opted for a loan the deposit is usually between 3.5% and 5% of the total value of the property. This is because most lenders prefer to request at least 10% of the property’s value as a deposit.
Am I in a position to apply for a mortgage on a new home?
The only thing you should really avoid is taking on a mortgage that could be detrimental to you or your family. Fortunately, it is quite common and even feasible to cover the cost of a mortgage with a new job. Lenders often work in leeway, so if you have a stable job it won’t be a problem.
Am I ready to change my lifestyle?
As a first time home buyer, you will have to consider what impact this will have in your lifestyle. Would yo have to cut entertainment expenses like vacations, hobbies, weekend activities, etc. However, if you feel like you are ready to take the next step, you will just have to adapt your new budget around those activities.
I’m ready to buy a new home in Miami! What’s Next?
Miami is one of the main cities in the USA, with a wonderful tropical climate and fascinating neighborhoods. It is definitely, an ideal place to buy a home. As a first time home buyer, our experienced team will give you all the advice and information necessary so that you can choose your new home.