If you’re considering buying your first home this year, it’s important to know some of the more common decisions you’ll need to make and understand the current status of the US housing market before proceeding. Although you might have shortlisted a house, here are 6 questions you need to answer in order to determine if you should move forward in the homebuying process.
6 Questions for Home Buyers
- Am I prepared to own a home? Although this depends on your financial state, this is probably the most important question of all. It also depends on your long-term and short-term goals. Are you prepared to handle all of the maintenance and upkeep? Are you staying in the area or will you be relocating in 2-3 years? Have you saved enough for a down payment?
- Do I need to get pre-approved for a mortgage? It’s imperative to get that pre-approval from a lender before you start your home shopping adventure. The pre-approval process takes into consideration your assets, credit history, debt-to-income ratio, and income. It also gives you the lender’s promise that they will loan you up to a certain amount for a home.
- How much home can I afford? Affording a home mortgage involves more than just being able to afford your monthly payments. There are closing costs to consider as well as homeowner’s insurance, property taxes, and upkeep costs. You need to have a detailed list of overhead costs before you close on the mortgage.
- Is it the right time to buy my first home? As of last year, the housing market was at an all-time high where housing prices and sales were concerned. However, the available inventory is still catching up with the additional demand created by the COVID pandemic. Consequently, the available options may be limited.
- What type of mortgage is right for me? Talk with your mortgage broker about your loan options. Typically, FHA and VA loans are best for first-time home buyers while conventional loans are better for buyers who can afford larger down payments. If you plan to live in a more affluent area, a jumbo loan might be a better option.
- Will my credit score enable me to get a good interest rate? Affording a home is a lot easier when you can get a lower interest. This is primarily determined by your credit score. You can check your credit score for at Equifax, Experian, and TransUnion FREE of charge online.
Buy a Home or Refinance in Columbus OH
For more information about buying your first home or to speak with an experienced Ohio mortgage broker, call Liberty Capital Services today at (614) 505-0620. Our experts are available to take your call and discuss your requirements in detail. Call now.
