Is The Time Right To Be A Homeowner?

Is The Time Right To Be A Homeowner?

While the real estate market has been struggling for sellers, their are numerous incentives that make this a great time for home buyers. Historically low interest rates, first time homebuyer credits, low home prices and a large inventory of properties make now the perfect time to buy a home.Even with all the positives, some Homebuyers Tax Credit know that purchasing a home is a big step and may still have some concerns about making one of the biggest purchases of your life. Below are some things that can help you know if you are ready to make the leap into homeownership!

  • You have a budget and you stick to it. If you have your finances in order that is the major first step. Becoming a homeowner, especially in a difficult economy can be financially challenging. If you have created a budget and stick with it you are on the right path. Having good money-management skills are a must-have so that when you do own a home you will be able to have a smooth financial flow for monthly home expenses.
  • You have a sizable down payment of at least 20%. While this is a large amount of money to come up with it is important to have as you will start out with having some equity. There are options out there for zero or low money down loans but if you have to sell your home before you expect you can potentially loose money and you will also need to pay for PMI (priviate mortage insurance).
  • Affordability should be a main concern, a steady income is vital. Your monthly income must cover Home Financing payments and homeownership costs and still allow you to live comfortably. You still need to pay for food, clothing, transportation and other living expenses as well as unexpected expenses.
  • Having an emergency fund is another sign that you are on the right track to homeownership. Owning a home means that there can be unexpected expenses at any time If you have enough cash on hand to cover three to six months of your living expenses, you're one step closer to being prepared for homeownership. Just in case something happens to disrupt your steady income — say a serious illness, unexpected layoff or even a natural disaster that prevents you from working — you want to make sure you can still afford to make your Home Financing payments.
  • Your debt and credit are clean. Having a good credit score will help to not only get a home loan but will also get you a lower interest rate on your Home Financing. Hold off on any large purchases such as cars before applying for a loan as this could effect your rating. Also review your credit report for free at annualcreditreport.com before even applying for the loan to check for any errors.
  • You are ready for the responsibility. In addition to the financial aspect of homeownership, you need to be sure you are ready for the other things that come along. Things like lawn care, upkeep as well as unexpected repairs need to be considered as part of owing a home. 

Whether homeownership is for you, however, depends on if you are ready both financially and emotionally for the change. After all, buying a home isn't just about money, lifestyle and commitment and time should also be considered in your decision. 

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The Pilgrim Team
Professional Realty Associates
2002 S Queen St, Suite 3
York PA 17403
Office: 717-757-5955
717-755-2683
Fax: 717-757-2887