Your First Home: Is Now the Right Time for You?
Excited to Find Your First Home?
I understand that buying your first home is a major decision.
Do NOT become discouraged! I’ll be with you every step of the way, making sure you feel confident and informed—from the initial search to finalizing the deal. I can help!
Buying your first home is an exciting milestone, and it’s also a big decision that requires careful consideration. The good news? Homeownership is usually within reach—it depends on your unique timeline and circumstances.
If you’re thinking about making the leap from renting to owning, here are some key questions to ask yourself:
Are You Ready to Stay in One Place for a While?
Homeownership is a commitment. If you plan to settle in one area for at least a few years, buying may be a great investment. If you travel very often, perhaps it’s not for you, or consider a property that allows subletting or short-term rentals to maximize flexibility.
How’s Your Credit Score?
A higher credit score means better loan terms, lower interest rates (cost savings!), and an easier approval process. If your credit isn’t where you’d like it to be, work on improving it as soon as possible.
You’re entitled to three free credit reports per year at annualcreditreport.com. A good strategy is to check one report at the beginning of the year, another mid-year, and the last at the end. This helps you correct any mistakes and stay on top of your credit status. These services also offer information to show you how to improve your credit score which can lead to significant savings when you decide to buy a home!
Do You Have a Steady Income?
Lenders want to see stable employment and consistent income before approving a mortgage. If you’ve been employed steadily and expect your income to remain reliable, you’re on the right track.
Have You Researched Locations?
Neighborhoods matter! Schools, commute times, amenities, and community vibes all play a role in finding the right fit. Online resources like city-data.com can provide useful data, as can town webistes, like HuntingtonNY.gov, but nothing beats exploring different areas in person to determine what works best for you.
Do You Have Savings for a Down Payment and Closing Costs?
You may not need as much as 20% down! Many loan programs offer lower down payments depending on your qualifications. Before dismissing the idea of buying, consult with a mortgage broker to see what you can afford. Also, explore free downpayment resources, as they may take some time to set up.
Additionally, consider closing costs, which include loan origination fees, title insurance, appraisals, recording fees, etc. These costs typically range from 2-5% of the home’s purchase price, so budgeting for them is essential. In some cases, these fees can be rolled into the loan amount (for a slightly increased interest rate) with the help of a lender.
If you don’t yet have enough savings but have a stable income, don’t be discouraged. There are programs that can help. Connect with a reputable mortgage professional for an initial consultation to explore your options.
How Will You Handle Home Maintenance?
Owning a home comes with responsibilities—repairs, upkeep, and general maintenance. It also brings pride, stability, and the freedom to personalize your space however you like. Will you work on it yourself, or hire help?
What’s Your Debt-to-Income Ratio?
Before buying a home, it’s best to reduce or consolidate debt. A lender will need to know your regularly occurring debts—such as rent, outstanding credit card balances, and payments on other loans—along with your income to determine your debt-to-income ratio. It’s a good idea to hold off on major purchases like a new car or other large investments, as they can affect mortgage approval; (it’s wise to wait until after you’ve moved into your new home).
What Kind of Home Suits Your Lifestyle?
Do you want a condo, co-op, or single-family house? Would you love a big kitchen, a yard, or multiple bathrooms? Identifying your must-haves will help with your search.
Let’s talk! Call or text me today, and let’s make your dream of homeownership a reality. 516-439-8211