To buy or not to buy; that is the question every potential buyer should ask

  Everyone who wants to buy a home has a mindset as to how the home should be, and the type of layout, structure, number of bedrooms, and yard. People are not always aware however of the type of pitfalls involved with buying a home. First, you need to work on your budgeting skills if you haven’t already. You also have to know where your money is coming from and what it is going to every month. Next, you should be able to pay off your monthly expenses each month without going into debt for it. So be sure to funnel some money you earned into savings so that you can cover any unexpected expenses, like home repairs, or cover bills in the event of layoffs. This blog is not meant to scare you away from homeownership, but these are the realities.   Before buying a house, make sure to consider the following:  

• Debt doesn’t control you

  Real estate is a good, worthwhile investment, but you still need to make sure that the debt of the mortgage will not be able to control you, and you will be able to pay it off in a reasonable amount of time. If you have debt before buying a house, make sure you have it under control. Debt won’t necessarily keep you from buying a house, but it will affect the sort of mortgage loan you will be offered and your ability to make your payments. Many people however have student loan and car loans while buying a house -- it just all depends on how you manage your debt. Too much will drive up your interest rate, which means you will have to borrow more to cover the interest.  

• You won’t have a landlord anymore

  Landlords are great when an appliance breaks or the plumbing starts leaking. As a homeowner and property owner you will now be responsible for all repairs, whether you make the fix yourself or hire a contractor. Before purchasing a home, make sure you have an emergency fund. Everything breaks eventually and this is something that you have to plan ahead for. You won’t have anyone to fall back on other than yourself.  

• You have a sizable emergency fund

  As mentioned, you should have a sizable emergency fund before purchasing a home. No one likes to think that something could happen, be it unemployment, illness or injury, but in the case of an unexpected crisis, your savings account may be the only thing keeping you in your home. If you have any doubts about your situation, you should reconsider buying a house at this time.  

• Your income is reliable

  A mortgage is a long-term commitment. You must feel confident that your current situation for work will enable you to make your payments. Think ahead 20 or more years, and ask if this is something that you want to do. You need to have held the job for a few years, and be able to make enough money to be able to have a mortgage that makes sense.  

• You have a decent credit score

  In order to qualify for a loan and get an interest rate that you are able to afford, you have to have a good credit score. Before you begin discussing mortgages with your bank, make sure that you start paying off your debts, including credit cards, a few years in advance. This way when you decide to discuss mortgages with your bank they will be able to look at your score, and feel confident that you will pay off the debt. People with higher numbers get better rates and in turn have to pay off less debt.  

• You’re ready to make a commitment to stay in one place

  When you choose to buy a home, gone are the days of being able to find a place you like better and being able to just pack up your stuff and move to a new apartment. You have to make sure that the house you live in is one that you will be happy with for a long time, and it is something that you will have to commit to for a good portion of your life.

1. You have saved for a down payment

A mortgage will require you to make a down payment to make the loan a little bit more secure by having your own money on the line. Buying a home is not something that should be done on a last second decision, it should be thought and planned out. Contributed by James Link SetSchedule has changed the way real estate marketing is viewed, by changing the way REALTORS® access clients and listing appointments. SetSchedule is a “first of its’ kind” exclusive membership based model that provides verified appointments, marketing tools, and elite invite only networking events for its members. By blending new technologies, and thought processes with proven success methods SetSchedule had incurred record producing results unseen in the industry.