Houston Real Estate News

Can You Afford to Buy a House Right Now? Smart Question!

[fa icon="calendar"] Nov 10, 2015 4:05:00 PM / by Julia Mickum

How to determine if you can afford to buy a house

At this point, you’re wondering if it’s time to say goodbye to rental life and hello to the homeownership. Maybe you’re ready to lay down some roots or you’re worried that you’re throwing away money every month on rent.

Buying a home IS a major decision.

But if you do at the right time and the right way, it pays off big. But the first thing to do is determine if buying a home is the right choice for you now.  Check yes or no, and see how it adds up! ( hint: the best indicator is a perfect score of YES )

You Have Long-Term Plans in Houston

Yes or No?

Houston is an integral part of your long-term future. You can deal with real estate market fluctuations because you’re in it for the long haul. This is not “just a phase”,  like a short-term job assignment, recent divorce or a time you are considering a career or lifestyle change.

Sticking around for +/- 5 years gives you enough time to recoup the transaction prices and start building equity.

You Have Your Down Payment Ready

Yes or No?

Today’s mortgage options will require anywhere from 3.5% to 20% down on your home. If you have that nest egg ready( see why it's called a “nest egg??!!) , you are financially ready to buy a home. This plus your credit rating ( another thing that counts big ) will decide the best loan terms available to you..

You Can Afford the Associated Costs

Yes or No?

There’s a lot to consider when looking at the price of home ownership.  Sure, you need to be able to support your monthly mortgage payment and have a down payment ready. But you’ll also have to factor in for possible HOA costs, maintenance, repairs, insurance and of course, property taxes.   Remember to see how the TOTAL payment fits into YOUR budget.  Just because the lender says you can borrow “X” amount of dollars, doesn’t mean you have to!   Make sure the move from tenant to owner doesn’t leave you so “house-poor” that the rest of your life is miserable!

Factor those associated costs in your budget to determine if you can afford a home. Everything clear? Good. You’re on your way to becoming a homeowner.

So, what’s next?  Take the first step to finding a home that fits your needs by requesting a complimentary listing of Houston properties. And the best part? All of them just went on the market today.  

Free Personalized List of 1-Day Listed Homes

Topics: Home Buyers