If you’re young and earning, owning a home is probably one of your greatest aspirations. However, buying a home in Charlotte is a major purchase and entails a huge responsibility, so the question you should really be asking is “Am I ready to buy my first home?”
Many first time buyers think that buying their first property is all about money - like paying the mortgage and property tax. What many fail to overlook is the emotional part that comes with a home purchase.
So today, I’ll be sharing with you a few tips on how you’ll know you’re ready for your first home purchase.
Let’s begin with “Are you emotionally ready?”
Here are a few questions you should be asking yourself when you think you’re thinking of buying your first home in Charlotte NC.
- Do I plan to stick around? Buying a home means staying in the city for not a year, not two years, but longer. We are talking about long time commitment here. A home is a financial investment, one which must be seriously considered because it can put you in a financially dire situation when you’re not prepared. Unless you are rolling in cash - now that is a different story.
- Am I happy in my workplace? How long do I plan to work there? One of the factors the lender will look into when checking your credit score is your job. You need to have a stable source of income to be approved of a housing loan, so if you want a home, you better make sure you're okay with your present company and have plans of staying there for at least three to five years.
- Do I have a vision or goals for the coming years? Is being a homeowner one of those? A house purchase is one you’ll be paying off for a long time, so you need to at least have a career path to follow in the next three years. If you plan to go backpacking around the world, now may not be a good time to buy a house.
- Why am I buying a house? If you're planning to settle down and start a family of your own, that’s a good reason for owning a house. But if you’re just itching to move out of the family house, that may not be a sufficient reason.
Are you financially ready?
When you’ve ascertained your emotional preparedness, it is time to check your finances. Check out the following questions which will ensure your finances are set to go for a Charlotte home purchase.
- How’s your credit score? This three-letter digit will determine whether you are capable of purchasing a home or not. If you are rocking an 820 score, that's perfect! If you are barely scraping by with a 620, you may want to get your financial affairs in order.
- Have you saved enough for at least a 20% down payment? Lenders will want you to have a cash deposit when you buy a home. The more substantial the deposit, the smaller your monthly mortgage payments are.
- Are you still paying off your student loans or any other loans? If you are still making some other payments, you may want to continue paying them off before making another huge purchase. You want to make sure you have enough money to pay for the monthly mortgage without starving yourself to death.
Check your answers. Be honest. If you are both emotionally and financially ready to buy a home for sale in Charlotte NC, call me at 704-997-3794.
I am Nancy Braun and I own the best real estate team in Charlotte. We will find you the best home which fits your needs and lifestyle.