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Am I Ready to Buy a House 5 Signs the Answer Is “Yes!"

Edited by Charity Chezum • Jun 01, 2020

Am I ready to buy a house?


Millennials make up the largest portion of American home buyers[1], so if you don’t have your own house yet, you might feel like you’re falling behind.

But there’s no “right” age to buy a house. Before you can start searching for your dream home in Shell Beach, you have to take a close look at your finances and your goals.


We’ve put together this guide to help you find out if you’re ready to buy your first home, so make sure you keep reading!


1. Your Credit Score Is Good


It’s not impossible to buy a house with a low credit score, but it is difficult. You’ll have trouble getting approved for a mortgage loan, and if you do get approval, your interest rates will likely be sky high.


Because of this, you’ll want to have a credit score of at least 640 before you start shopping for a house. The higher your credit score, the easier (and cheaper) buying a house will be for you.


2. You Can Afford the Down Payment AND the Other Costs


Many first-time buyers make the mistake of believing they can buy a house simply because they can afford the listing price. But there’s a lot more money involved in buying a house than what you put in the initial offer.


For example, you’ll have to pay for the following:


  • Closing costs
  • Mortgage payments
  • Property taxes
  • Homeowners insurance
  • Utilities
  • Etc.


As you’re creating your budget, make sure you consider these expenses as well. Just because you have enough money for a down payment doesn’t mean you can afford a house just yet. 


3. You Have Steady Employment


Even if you have enough money for all these expenses, you should put off buying a house if you don’t have steady employment. If you lose your job right after buying a house, you’ll find yourself in a financially tricky situation.


You also have to prepare for unexpected costs as a homeowner.


If something goes wrong, like a pipe leak or a broken window, you won’t have a landlord to take care of it for you. Instead, you’ll have to pay for all the repairs yourself, so make sure your paycheck is flexible and reliable enough to account for these costs.


4. You Don’t Plan to Move Any Time Soon


Spend some time thinking about your goals for the next several years. You shouldn’t go through the process of buying a house if you don’t plan to stick around for very long. If you plan to move in the next three to five years, you might not be ready to buy a house.


5. You’re Relatively Debt-Free


Buying a house is one of the biggest purchases[2] you’ll make in your life. If you’re already struggling under mounds of debt, you might not want to add more to the pile.


Of course, this doesn’t mean you can’t have any debt if you want to buy a house, but if you can wait until your debt is small and manageable, you’ll be better off in the long run. 


Am I Ready to Buy a House? Signs You Should Start Shopping for a Home in Shell Beach


Do you fit all these first-time homebuyer guidelines? Then you’re ready to start shopping for your new home!


But you might not want to do it alone.


David & Karen Present can help you find a beautiful home in the Shell Beach area that matches your price range. Don’t wait to call us at (805) 459-8798 for a chat about what you’re looking for!






References:

1. https://www.nar.realtor/research-and-statistics/research-reports/home-buyer-and-seller-generational-trends

2. https://www.forbes.com/sites/work-in-progress/2010/08/02/lifetime-earnings-home-car-children-education-retirement/#1450509a507d

What does sale pending mean?

By Danica A • 01 May, 2022
You’ve spent months searching for the perfect home, and you think you may have finally found it. But when you hop online to do some additional research, the home’s status is listed as “sale pending.” Are you entirely out of luck? It doesn’t say “sold,” after all. Find out more about what “pending” means on a house for sale, and what your options are if you’re interested in it. What does sale pending mean in real estate? A pending sale in real estate simply means that the seller has received and accepted an offer on their home. However, the deal is not yet finalized — hence “pending” and not simply “sold.” If you’re interested in a pending property, your agent should consult with the seller’s agent to learn more about the status. You may still have a chance, though it is likely slim. Can you make an offer on a house that is pending? In short, yes. But it may not be worthwhile. A pending deal is not set in stone, but it’s not exactly open for discussion either. Unless the pending deal falls through, you can’t simply win over the seller by offering more money or waiving certain contingencies. In fact, most sellers are contractually obligated to honor the current offer, even if a higher bid comes in. Still, if you’re really interested in the home and counting on the current deal to fall through, you do have the option to submit a backup offer. Be sure to consult with your real estate agent for advice on the best way to move forward in this situation. Reasons a pending sale may come back on the market It is possible, if not likely, for a pending sale to come back on the market. There are many reasons why this could happen: Below are some common reasons why real estate purchase transactions sometimes fall through.

4 Signs That It’s a Good Time to Sell Your Home

By Danica A • 01 Apr, 2022
You might already know for a fact that you’re ready for a new home. But before you pull the trigger on selling your current home, you want to know that you’ll get top dollar and be financially secure for the long haul. Here are four signs that there’s no time like the present to put your home on the market. 1. You Don’t Need Any Big Repairs or Remodeling Sure, upgrading a bathroom sink might make you feel better about what potential buyers see when touring your home. But don’t sweat the small stuff. You aren’t likely to recoup the expenses you put into most home improvement projects, much less turn a profit . The important thing is that your home doesn’t need some type of major overhaul that sends buyers running for the hills – something like a leaky roof or cracked foundation. Barring any such severe flaws, just double check with your real estate agent to make sure there aren’t any renovations that would significantly raise your home’s value. If there aren’t, then you should consider your home ready to hit the market. 2. You Have Positive Equity to Avoid Out-of-Pocket Costs Equity is the difference between what your home is worth and what you owe on it. Say your home is worth $100,000. If you only owe $50,000 to pay off your mortgage, that means you have $50,000 in positive equity. Ideally, you’d like to have enough equity to cover closing costs and put some money down on your next home. At a minimum, you want to have enough to cover the current balance of your mortgage, so you can avoid paying out of pocket. As long as you have even a small amount of positive equity, that’s a positive sign that you’re ready to transition to a new home.

Foolproof Paint Colors That Will Sell Your Home

By Danica A • 01 Feb, 2022
Selling a home with an electric, lime-green living room is going to be more difficult than you originally anticipated. In fact, your home might sit stagnant on the market for quite some time. The reality is that paint color packs a serious punch in the real estate game. So, which colors are going to sell your home? A home remodeling guide and contractor liaison website, surveyed 200 leading interior design experts and influencers to uncover the upcoming paint trends for owners to keep in mind before selling their home. We’re armed with Fixr's Paint & Color Trends Report and ready to dish on the hues to use and hues to lose before putting your house on the market. (Hint: Lime green didn’t make the list.) The Kitchen: White or Warm Gray Design pros believe that warm gray or classic white tones are best for painting interior rooms like the kitchen. Some of our favorite white and warm gray paint colors to check out for your kitchen include Revere Pewter and Simply White by Benjamin Moore or Pure White and Agreeable Gray by Sherwin Williams. The Living Room: White When in doubt, white it out. Surveyed pros believe white paint will sell your home because not only does it provide future buyers with a blank slate, but it gives living rooms a fresh, well-kept appearance that appeals to the masses. Our tried-and-true white paint colors include Snowbound or Greek Villa from Sherwin Williams or White Dove and Chantilly Lace from Benjamin Moore.
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