We buy houses all the time and we know we want to buy houses. If you are not sure what to do, Good idea would be to ask yourself if you want to buy a house or rent? Pandemic boom pushed home prices higher as well as rent prices. Lets dive into four questions you want to ask yourself before you make any decision.
Where do you live?
In more than 25 biggest Cities In US, buying a starter home was less expensive than renting something similar. After The prices jumped last year you can find areas where it is more affordable to rent than buy. Some of the US biggest cities saw a mortgage payment that was over 40% higher than previous years. On the other hand some of the places were more favorable to buy, not rent. Like you see you can find either way.
Can you afford it?
Can you afford it or I should ask if you are ready to be a homeowner. IF you decide to buy , what impact that would have on your savings after using money for downpayment. ITs good idea to have at least 6 months in reserves, $5,000-10,000 to cover closing costs and credit score above 700. Your mortgage payment including all the expenses like taxes, insurance, utilities etc should not exceed 40% of your net income.
How long will you live there?
If you are looking for something for a couple of years, then renting may be a good idea. In markets like we have right now when everything sells super fast for way higher than listing prices, renting may be a way to go. IF you are planning to stay there for a while you can buy a house. Interest rates have an inverse relationship to the prices.
What are your monthly payments?
YOu have to do the math to see how much money you have to spend upfront and how much you need to maintain it. No need to rush to become a homeowner if you don’t feel comfortable to cover the cost. Some of the models suggested that 25% debt to income ratios a safe ground.
If you looking to sell your house fast call our office at 847 242 2212 or send us an email at info@moderntimeshomes.com