To buy or not to buy, that is the question.....

Wouldn’t it be great to be born with a life’s instruction manual and have all our steps mapped out for us? Something like - Life for Dummies- (or is it already written?) Volume one from newborn to 4 years (mostly pictures), then 4 to 10 years and so on. You get the idea. But then again, would you want to know the future? I am not sure. So life is uncertain, it is what it is. Buying a home also carries a risk, an uncertainty.  It is a big decision, but you can take some steps to make it a little easier. Lets remind ourselves how lucky we are to be living in a country where it is still possible to own a home!  Regardless of the current economic circumstances, owning a home is still one of the best investment decisions you can make. Here are some of the questions I pose to my clients, especially first time homebuyers. The more you know, the better decisions you’ll make.

·        Is this the right time to buy a home? My question is: Is it the right time for you?

·        Get hold of your finances. If you do not have a budget, this is the time to make one. The important thing is to know where your money is going. If your monthly mortgage payment is going to keep you awake at night, you should reconsider.

·        How long do you plan to live in the home?

·        How many rooms do you really need, as oppose to how many you want?

·        Walk the neighborhood you are interested in, talk to the neighbors, visit during the day and at night, it is the only way to know if a neighborhood is the right one for you.

·        Do you have cash reserves to make mortgage payments in case of unforeseen circumstances?

·        Have you considered the cost of maintaining a home?

·        Get pre-qualified or better pre-approved for a loan. Very important. It is a waste of time and energy to look at homes that you may not be able to afford.

·        If you are buying a fixer upper count on having some extra money available. Renovations most of the time go over budget.

·        Once you have been pre-approved for a loan, and this some is extremely important, DO NOT go on a shopping spree for new furniture, household goods etc. Banks are known to pull out credit scores 2 or 3 days before closing and if the ratios between income and expenses have changed, they could pull the plug on the loan.

·        If your credit is not the best, wait, improve it and then apply for a loan. In the past consumers with lower credit scores could get a loan but would be hammered with very high interest rates. Buyers beware!

·        I think of my home’s equity as my savings account and use it when or if it is absolutely necessary. I hope you can do the same.

·        Once you own your home, walk straighter and stand proud, you have done it!

Every accomplishment starts with a single step and these are my baby steps at blogging…. well…I am more like at the crawling stage. I would love some feedback. Thanks