Some of you are asking yourselves, “Is it a good time to buy a home?” The answer depends on whether you can afford it. Yes, housing prices are down. There is a glut of foreclosures, new homes, and home resales. The prices are low, so you think maybe I should take the plunge and stop wasting money on rent.
There are several things you should consider and have in place before buying a home.
- Have six to eight months of living expenses set aside in an emergency fund.
- You have a budget/spending plan and are sticking to it.
- Have at least 20% down payment, if not more.
- Have money for closing costs.
- Make sure you can afford the mortgage payment, insurance, taxes, upkeep on the home, higher energy costs, repairs or replacement of the appliances.
- Do not tempt yourselves into buying new furniture to fit into the new home, unless you can pay cash.
- Plan on using your budget/spending plan.
If you have all this in place, then you can consider buying a home. Make sure you have it inspected by a reputable home inspector. The inspector should spend about one to hours, depending on the size of the home, inspecting everything, the electrical, plumbing, roof, etc.