Key Takeaways
- Although buying your first home can be a daunting task, it is easy to recognize when you are ready.
- Assess your financial picture and how much rent you are paying.
- We are here to help you achieve homeownership.
To Buy or Not to Buy? Here’s the answer
Timing is everything, they say. How can you tell when it’s time to end your lease? These are the signs it is a smart decision to move into your own home, according to real estate professionals. If you find yourself nodding along to the items on this list–congratulations! You are ready to be a homeowner.
#1: Rent keeps getting more expensive
Renting an apartment is a smart financial decision. However, if your monthly payments keep increasing year after year, it might be time to lock in the price with a mortgage. Rent prices are rising in almost every market, but some areas see a faster increase.
According to Freddie Mac the median increase in 2022 will be 3.6%, however, some cities that are attracting the most people will see increases of more than 7%. Realtor.com has found that homebuying for the first time is more affordable than renting in nearly half of the country’s largest cities. This is a good time to make a move for your first home.
#2: Your job is in a long-term partnership
Your employment is a key factor in getting a mortgage. It also has a lower interest rate. It’s a good time to begin looking for a mortgage if you’ve been in your current job for longer than two years or have a history of self-employment or freelancing income.
The majority of companies are committed to giving you anywhere from 2 to 5 percent raises in 2022 for all positions. This will make your steady employment more lucrative than ever before.
#3: Your nest egg has been hatched
Savings account can grow from a piggy bank to a high-yielding jackpot. Using some of your savings to buy a home is a smart financial move. You will get a higher return on equity as the property’s value rises over time than you earn in your savings account each year.
You don’t need to give up all your wealth to purchase a home. Conventional wisdom states that you must have 20 %!,” to buy a home. However, this is not a requirement. It’s only for the purpose of avoiding paying mortgage insurance for less then 20%. FHA loans, which require as little as 3.5% for first-time homebuyers, only require a minimum of 6%.
#4: You boast about your credit score
You have done all the work to improve your credit score. This is a long and difficult process, but it’s an amazing accomplishment. Your monthly mortgage payments will be lower the higher your credit score. There are options for those with less than perfect credit. Lenders are happy to help you get into a home.
Your debt-to-income ratio is a key component of a great credit score. You can have some debt, but most people have student loans or car loans. This allows them to get a great rate for a mortgage on their dream home. The key to reducing your total debt is to make sure it’s lower than 36% of your income.
This post was written by Dayana Susterman Dotoli. Dayana is the head real estate agent for the Tiffany House In Ft. Lauderdale Beach. Dayana has assisted over 150 individuals with buying, selling, and leasing at Tiffany House. The Tiffany House Residences is a 12 story tower, offers 129 residences, including 1, 2 and 3-bedroom condominiums and townhomes, with exclusive, resort-style amenities and views of the Intracoastal Waterway and the Atlantic Ocean. To view our luxury oceanfront condos for sale in Fort Lauderdale, Contact us today!
