So you've heard about the $8000 tax credit. Maybe you have some friends that are buying or talking about it. You're parents might even be on your case about it. You have a decent job with a steady income and a some cash in the bank. Real Estate Agents are telling you to buy now so that you qualify for the tax credit. Mortgage brokers are telling you to get pre approved and see what you qualify for. You think that buying a house is the next "sensible" thing for you to do in life. But, you're not so sure it's time. Soooo... what do you do?
My opinion for those that are in this situation, is that it's really a matter a personal preference. It's a lifestyle choice that you're making when your buying a home and you intend to live in it. So for those that are a little confused about it, I would suggest starting by asking yourself, "what kind of lifestyle do I want to live now and in the next 3- 5 years?". Every situation is different.
There are a thousand different reasons why you should buy now and for some people there a plenty of reasons why they shouldn't. I never want to push anyone into buying a house if they're not convinced that it's the right thing for them to do.
Just because you CAN buy something doesn't mean that it right for YOU. Just because something is on sale doesn't mean that you NEED to buy it. AND just because you can buy it, doesn't mean that you can AFFORD it.
It's most important that you're doing what's right for you and you're future and not what other people and/or society are telling you to do.
Here are a few things that you may want to think about:
1. Am I happy with my current living situation?
2. Am I happy with my current lifestyle.
3. Can I support myself and maintain a household? ( job security/ income / savings)
4. Will owning a home take away any of my personal freedom?
5. Would buying my first home be for a short period of time or long term?
6. Would I even qualify to buy a home?
As I mentioned before, these are all very personal questions that only you can answer for yourself. One of the biggest concerns that people have is that if they buy a home will they be able to continue to do the things that they enjoy now after they sign an agreement. I would say that if you don't think that buying a house is going to enhance your quality of life, than maybe it's not time yet. Some people don't mind putting all of their money into their house, other people need a little bit more room to be able to take vacations, go out on the weekends, etc. The fact of the matter is that things will change after you buy a house but it doesn't mean that you won't be able to buy a pizza on Friday night just because you own a home. This is where an honest appraisal of your net income is important.
In summary, if your confused, take a step back and ask yourself some real important personal lifestyle questions. Take a look at your finances and then get an idea of what you're comfortable with spending on a monthly basis. I would suggest looking at your net income, not your gross. Once you know what you're comfortable spending on a monthly basis, then maybe you want to go ahead and pull your own credit report and see what all 3 scores are. Knowing what you can afford and what your credit looks like puts you in the drivers seat. That will help you eliminate doubt and give you confidence in your financial situation and make the process less overwhelming. That's an ideal place to be.
Keep It Real Estate
Chris Edwards
Realtor
Century 21 Absolute Realty
