Once you read the full guide and do your research to find out what it means to be a homeowner and what the cost of having a home is, you will be confident in the home buyer process. Start here to find out if you’re ready to purchase a home:
Are you purchasing a new home for the right reasons?
1. Why are you considering purchasing a new home?
◌ Starting a family?
◌ Relocating for work?
◌ In need of a bigger/smaller home?
The home buying process can be tricky but we’re here to help. These additional questions will help your West Team Realtor® determine the next steps necessary for your specific needs.
2. I have been thinking about buying a home for at least a year now.
◌ Yes ◌ No
Are you financially stable?
3. I feel relatively secure in my job. ◌ Yes ◌ No
4. My current pay should stay about the same or increase. ◌ Yes ◌ No
5. My co-borrower (if any) also feels relatively secure with his/her job and pay. ◌ Yes ◌ No
6. I’m able to cover any inspection, moving and closing expenses. ◌ Yes ◌ No
How long you plan to live in your new home?
If you purchase a home and get a job transfer or decide to move after only a short time, you may end up paying money to sell it. The value of your home may decrease over couple of years, and you will not be able to cover the costs that you paid to buy the home and the costs that it would take you to sell your home.
7. I plan to live in my new home for a long period of time (5+ years). ◌ Yes ◌ No
Freehold vs. Condo
Maintenance, improvements, taxes, and insurance are all costs that are added to a monthly home payment. If you buy a condo or a home in certain communities, a monthly homeowners association fee or condo management fee might be required. Add up all the additional costs that you will face monthly as the new homeowner.
If you are dreaming about a big yard and all the things that come with owning a single-family home, prepare yourself for all the additional home maintenance work that may significantly change your current lifestyle.
8. I want a home that’s mine without restrictions from a condo board. ◌ Yes ◌ No
9. I understand I’ll have to pay for repairs and upkeep. ◌ Yes ◌ No
10. I understand I’ll have to pay the mortgage, property taxes, insurance,
utilities, and homeowners association fees (if any).
◌ Yes ◌ No
11. I understand the value of my home may decrease.
◌ Yes ◌ No
Estimate the cost of home-owning
12. Estimated monthly home-owning costs are surprisingly high. ◌ Yes ◌ No
If you answered YES to most of the above questions then you are ready to get started! If you answered mostly NO let’s chat about the next steps to achieve your real estate goals.
By the end of the guide, create a precise estimation of your finances, including monthly homeownership costs and the buying process costs, to see if buying a home will fit your monthly budget and how much you need to save first.