Here Are Some Things To Consider If You’re Looking At Homes For Sale In Oxford MS
If there ever was a great time for buying a new home – this is it. Due to low-interest rates and possible tax incentives (check with your accountant as always!), many people know that now is the time to buy a home, especially your first home. The whole home-buying process doesn’t necessarily need to be as stressful as you might think. Get informed, do some research and get your money situation in shape. The sooner you start preparing, the easier it will be to set things right.
Let’s take a look at these five crucial questions you need to ask yourself, prior to buying a new home.
How Much Can I Afford?
First and foremost, you need to distinguish exactly what kind of home you can afford, so you are clear how the purchase would affect your finances. You can search online for mortgage calculators to get a rough picture of what your expenses would look like. These calculators base their calculations on your income, the length of the loan and an average interest rate. You need to know that, apart from your mortgage, there are several more payments you should count on: insurance, maintenance costs, utilities and taxes, etc. Start a budget, unless you already have one, and get your financial records straight so you know exactly where you stand and how much money you can put aside for your new home. A strong suggestion would be to call your mortgage lender and ask what you are pre-qualified for because unfortunately, it’s not as easy as saying, “I make this amount every month, so I can afford X per month”. They will look at what your current monthly debt is along with other factors, which is why it’s so important to do this first.
Is My Source of Income Steady?
Do you have a reliable source of income? Are you sure it will remain consistent for a long period of time? In case you’ve heard rumors about layoffs at your company, or maybe you’re thinking about quitting your job and searching for a new one, you might want to check with your lender to make sure that it won’t affect your home purchasing ability if you are looking to purchase a home. You need to know where your mortgage payments are going to come from, and you need to know it for sure. If you own your own business, the banks usually have a policy to see what you made for the past X years (but always check with your lender) in order to give you an accurate pre-qualification.
How Is My Credit Score?
Your credit score plays an important role when it comes to loan eligibility. Most people have a credit score, and it can range from 300 to 850. In general, the higher the score – the more eligible you will be for better loan rates. In case you have a low credit score, the first thing you need to do, before doing anything else, is learn how to improve it. After you work on your credit score and after you get those numbers where they need to be (unless they already are), you can work toward getting pre-approved for a loan. Boosting your credit score is not science fiction; pay your bills on time and always stay on top of your credit history.
Do I Have Enough Money For a Down Payment?
Keep the down payment in mind and make sure you have the necessary funds. Down payments may vary from 0 to 20 percent of the original home price. Do you have enough savings? Awesome, you’re already on top of things! Not sure you have enough money stashed? Start saving now and touch base with your lender to see what sort of down payments options you have!
Am I Ready For “Work Around the House”?
You are about to buy your first home, and surely, all those nice, fuzzy feelings start to emerge at the very thought of owning your own piece of real estate. Just remember that there is also maintenance and upkeep involved in owning a home, and you also have the freedom to do upgrades, renovations, and make the home your own as well (as long as covenants and local laws rules allow).
Keep in mind you will no longer be renting, so the loan, the house itself and all the repairs that might occur are going to be your job from now on. Get prepared and be excited about your new responsibilities as a homeowner!
Buying a new home, especially your first home, is supposed to be one of the most exciting periods of your life. Make sure you step into the process prepared and informed. Set your records straight and get all the details covered, this way your first home-buying experience can really be a dream come true.
