• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Accessibility Statement

Follow Us on FacebookFollow Us on TwitterFollow Us on InstagramFollow Us on YouTubeRSS Feed

Kimberly Howell Properties

San Antonio Real Estate

office@kimberlyhowell.com
(210) 493-6888
  • Blog
  • About Us
  • Agents
  • Buyers
    • Neighborhoods
    • Relocation Information
  • Sellers
  • Listings
    • Available Rentals
    • Homes for Sale
    • McNair Custom Homes
    • Open Houses
  • Contact
  • Rental SearchHomes for Rent
  • REALTORS®Find an Agent
  • McNair Custom HomesNew Construction
  • Property SearchHomes for Sale
You are here: Home / Buying a Home / Am I Ready To Buy A House? Five Questions To Ask Yourself First

Am I Ready To Buy A House? Five Questions To Ask Yourself First

April 30, 2013 by khproperties Leave a Comment

Ready to Buy a House?

The Big Question.

While the market has been heating up and interest rates have remained low, many people are asking the question; “Am I ready to buy a house?” Buying a home is (obviously) a big decision in anyone’s life and certainly not to be taken lightly. The question is important not just for first time home buyers, but move-up buyers as well. Is now the right time? Have I prepared sufficiently? Is the home of my dreams out there waiting for me? Can we sell this house and buy a new one? So many questions. Hopefully, the following thoughts will help you prepare and decide whether you are ready to buy a house or not.

Am I Ready to Buy a House?

Money, money, money. – The biggest questions, hands down, in determining if you are ready to buy a house are the questions of money. Buying a house takes money. There is no other way. Whether you pay cash or get a loan, you will still need money to buy a home, but there’s more to it than just what you spend at the closing table.

Down payment and closing costs are the big chunks of money you’re going to spend before you even get the keys to your new home. Whether you choose an FHA, VA, or conventional loan, you’re still going to need some cash. Even after you’ve considered the down payment, there are also closing costs. These range from the cost of getting the loan (lender’s fees) to the actual cost of the closing (title companies don’t work for free). Once a home is located and decided on, a much more detailed analysis of closing costs can be done and you can see the numbers and decide if you’re ready to buy this house.

Am I (credit) worthy? – Ahhh, the dreaded credit score. No one likes them. We’ve had people with excellent credit tell me their scores were terrible and we’ve had people with poor credit tell me their scores were amazing. There’s a lot of confusion surrounding credit scores. Your best bet? Sit down with a qualified, local lender (not an online source like LendingTree). They will review your basic finances, run a credit report, and if they can pre-approve you, they will give you a price range you can afford and estimates of what your monthly payment will be.

Many buyers we speak with are worried about visiting multiple lenders as they don’t want their credit score to go down (each credit inquiry in your file negatively impacts your score). In the case of home and car loans, as long as the queries are based in a short amount of time, you do not get penalized for multiple inquiries. You can review your credit report prior to visiting with a lender by visiting AnnualCreditReport. This site (unlike many others) is absolutely free. You can use it every year to keep track of what’s in your credit file. We suggest you take one report from one of the credit bureaus (Equifax, Experian, and TransUnion) once every four months. By rotating who you take the report from, you’ll be able to view your info three times each year. Knowing what’s in your credit report can help you know what needs fixed in advance.

Rent vs. buy. – One of the easiest things you can do if you’re renting and have begun to think about whether or not you’re ready to buy a house is to take a look at your current rent. First, when does your lease expire? If you just signed a new two year extension on your lease, you might want to stay put for awhile. A lease is a legal contract and breaking your lease often has negative monetary consequences. If you’re a few months away from the end of your lease, you might want to start thinking about it. The better you can time the switch, the less problem you will have when you tell our landlord you’re moving.

How much do you pay a month in rent? Do you scrape together each month’s rent by looking under the sofa cushions? Or do you pay it and still have money to save? If your budget is tight with your current rent, the goal of buying a house should be to pay less than you currently do. If the money is good and you’re actually able to save money each month, you might want to think of targeting that area as a monthly payment. Your lender will help you see the difference between rental and home ownership (there are advantages to owning a primary residence such as mortgage interest deductions).

Are you mentally (and financially) prepared for the challenge? – Ask any homeowner about their first home (or their current home) and they will tell you the same thing – “expect the unexpected.” This is why lenders push for cash reserves as part of their agreement to loan you the money to buy your house. Other homeowners will tell you of all the things they never thought of before buying a house. Although owning a home can be a lot of fun, it can also be frustrating at times – when your water heater blows in the middle of the night, when your sink or toilet backs up, when the appliances pass their useful life span and simply die on you – no matter what it is, there will be more costs associated with owning a home then you plan out. Being prepared is always a good thing.

“Now is a great time to buy.” – You’ve probably heard this phrase before. Sometimes we as Realtors overuse this phrase, even though the true question should be, “Is now a good time to buy for me to buy?” Although there are many excellent factors affecting the potential for a buyer to purchase a home right now, the simple fact remains, that you have to be comfortable with the purchase. Buying a home that you can’t afford or doesn’t suit your needs solves nothing. It will only hurt in the long run if you buy when you’re not ready.

image courtesy of Kansir

Related Posts

  • Organize Your Move: Moving ChecklistOrganize Your Move: Moving Checklist
  • Beneficios de ser dueño de su propia casa.Beneficios de ser dueño de su propia casa.
  • How much home can I afford?How much home can I afford?
  • Loan Underwriting Doesn’t Need To Be A Complete MysteryLoan Underwriting Doesn’t Need To Be A Complete Mystery
  • Closing on a Home While You’re Out of Town?Closing on a Home While You’re Out of Town?

Filed Under: Buying a Home Tagged With: home buying, affordability

Quick Search

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

Beneficios de ser dueño de su propia casa.

Beneficios de ser dueño de su propia casa.

Felicidad: No hay nada que se compare a la sensación de tener su propio hogar. Puede arreglarlo, darle su propio estilo, tener un perro o un gato, e incluso plantar un árbol si lo desea. ¡Solo imaginarlo causa … [Read More...] about Beneficios de ser dueño de su propia casa.

650 Winding Ravine - Stadler Custom Homes

A Bird’s Eye View of 650 Winding Ravine

As 650 Winding Ravine continues to take shape, Stadler Custom Homes has provided us with some new drone footage to share with you. The home, which is being built to benefit the Military Warriors Support … [Read More...] about A Bird’s Eye View of 650 Winding Ravine

Pondering Downpayment

Downpayments: How Much Should You Pay Up Front?

If you're going to be buying a home any time soon, you're going to need to start thinking about your downpayment. Typically expressed as a percentage of the sales price, the downpayment is often one of the … [Read More...] about Downpayments: How Much Should You Pay Up Front?

Loans

Credit Healthy – Credit Scores, Lenders, and Pre-Approval Letters

Agent Joyce Marie Jackson returns for another installment in her "Credit Healthy" series with information about the all important pre-approval. A very important step in the process of buying a home, a lender's … [Read More...] about Credit Healthy – Credit Scores, Lenders, and Pre-Approval Letters

FOMO

How To Create Real Estate FOMO

This week, we turn the keys over to agent Tatiana Delaserna and let her take over the blog. In this post, Tatiana discusses "FOMO" - we don't want to spoil her article, but we have to say, it's a very real … [Read More...] about How To Create Real Estate FOMO

Search Our Site

Real Estate Topics

  • Buying a Home
  • Homeowner Tips
  • KHP News
  • Local Events
  • Local Laws
  • Miscellaneous
  • Mortgages and Financing
  • Open Houses
  • Real Estate
  • Real Estate Market
  • Renters and Landlords
  • San Antonio Places
  • Sell Your Home
  • Technology
Our real estate agents can help you with properties anywhere in Texas. If you need assistance finding agents in other parts of the country, please contact us.

Search Homes

Explore Cities

  • Alamo Heights 31 Listings
  • Bandera 316 Listings
  • Blanco 108 Listings
  • Boerne 482 Listings
  • Bulverde 101 Listings
  • Canyon Lake 221 Listings
  • Castle Hills 20 Listings
  • Castroville 25 Listings
  • Cibolo 120 Listings
  • Comfort 43 Listings
  • Converse 250 Listings
  • Fair Oaks Ranch 45 Listings
  • Floresville 189 Listings
  • Garden Ridge 11 Listings
  • Helotes 144 Listings
  • Hill Country Village 3 Listings
  • La Vernia 103 Listings
  • Lakehills 50 Listings
  • Leon Valley 9 Listings
  • Live Oak 30 Listings
  • Mico 63 Listings
  • New Braunfels 521 Listings
  • Olmos Park 7 Listings
  • San Antonio 5750 Listings
  • Schertz 165 Listings
  • Seguin 233 Listings
  • Selma 50 Listings
  • Shavano Park 18 Listings
  • Spring Branch 202 Listings
  • Terrell Hills 28 Listings
  • Universal City 50 Listings
  • Windcrest 14 Listings
  • Hollywood Pk 5 Listings

Stay up to date with the latest from Kimberly Howell Properties.

San Antonio real estate and property information provided by Kimberly Howell Properties. Kimberly Howell Properties does not assume any liability or responsibility for the operation or content of any of the linked resources, nor for any of the interpretations, comments, graphics, or opinions contained therein. All information deemed reliable, but not guaranteed.

KJH Properties, Inc. is a licensed real estate brokerage in the State of Texas, Equal Opportunity Employer, and supporter of the Fair Housing Act.

TREC Information About Brokerage Services | TREC Consumer Protection Notice | Privacy Policy

All content © 2009-2020 Kimberly Howell Properties, unless otherwise noted.