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Are You Ready To Buy

By
Real Estate Agent with Crestmark Realty Group LLC

Are You Ready to Buy I got a call the other day from a friend who told me that her goal was to purchase a property next year. She went on to express how she hated moving every year or trying to find roommates to share a place with. I could sense that she was frustrated. I hadn’t heard this much frustration since she lost out on a pair of high heels during a Macy semi annual sale, so I know she was serious about this.

However I had to go in to lecture mode, and explain to her that being a homeowner is a big deal. It comes with a lot of perks but it has a hefty financial responsibility. I asked her one simple question which was “How do you know that you’re ready to buy” She replied with the longest pause on record especially coming from a chatty Kathy as her self. She had no answer to this question or the next one which was “Does buying a house make financial sense to you right now? I began to outline Key Principles of Homeownership which are the following.

Steady Employment:

When you agree to a mortgage loan you are agreeing to make a payment each month so make sure that your employment is strong and stable which means that your company is far from filing Chapter 11.

Emergency Fund

 Make sure you have an 8-month emergency fund. Having savings and a down payment in this economy is not enough. . You should have at least 8 months worth of bill money saved away. Emergency funds are not meant to be touched not even if that Plasma 3D TV is on sale at best buy for 30% off.

Good Credit.

 Right now interest rates are at historic lows, however lending is really tight. Excellent credit scores get the best rates. If your credit score is on the cusp of average you may want to hold off and get it fixed and cleaned up it will save you mass amounts of frustration.

Down payment

 Make Sure you have Savings for a down payment. It is recommended that you have at least 20% to put down.

I suggest having all these ducks in a row it will make buying a home feel like a day at club med. If you don’t have them lined up buying a home will be nothing short of the worse traffic jam of your life.

Comments (2)

Sharon Lord
Maracay Homes - Peoria, AZ
New Home Advisor

Josh - all very good points!  First-time buyers may not be ready, even if the market is so low...it has to make sense all the way around!

May 05, 2011 09:47 AM
Josh Feinberg
Crestmark Realty Group LLC - Scottsdale, AZ

Sharon thank you so much for your kind responce. Many buyers out there today dont understand that there is a process to adhere to the days where anyone can get a property dont exist and its hard for buyers to digest that.

May 05, 2011 09:58 AM