Nationwide, it seems the housing market is heating up, just
as it does nearly every Spring and Summer – including in the Twin Cities area.
Even with those seasons passed, the interest rates are still low with plenty of homes available on the Twin Cities real
estate market. That considered, more and more Minnesotans are pondering if they are ready to
buy a home yet. There are many things to consider, especially for those who may
be first time
Here are some questions and some possible answers to think
of if you are considering buying
planning to stay put? If the answer to this is no, you might want to
reconsider buying a home. If you think you are planning on stay in an area for
any less than 5 years, it may be worth it to really determine if buying a home
is right for you.
done your research? There is a lot of research associated with buying a
home. That includes what city or neighborhood might be best, where the real
estate you can afford is located, and even what types of amenities you would like to
live near. That’s not even including the financial impacts, such as what shape
your credit score is in, how much mortgage you think you can afford, and more.
have you been sticking to a budget? If you haven’t been sticking to
a budget before you get a home, you’re probably not going to stick to it after
you get one. That could put you at risk for financial jeopardy.
Determine a budget – not just one to help you save for a house, but for how much
money you expect you will have to pay once that mortgage is yours. And the
insurance. And the taxes. Then make sure you stick to the respective budgets
have a reliable income? This is very important. If you take out a mortgage
one month and the next month you lose your job, there isn’t a do-over. It’s
best to be well-established in a job at a stable company for at least a year
before applying for a loan. The longer you’ve been with the company, the more
reliable your job is considered to be.
have a down payment? This one is hopefully yes and as close to 20% of your
expected mortgage loan as possible. Though it is still possible to buy a home
with zero down, many home lenders are skittish and would prefer that you
have larger down payments than in years past.
Basically what these questions are getting at is, when it
comes to buying Twin Cities real estate, “Have you thought it through?” It’s a
huge financial commitment, the largest transaction that most people will make
in their lives. It has the potential to make or break your financial security. Thinking about
the answers to these questions is extremely important, especially if you are
preparing to buy your first home. We want you to take the plunge, but we want
you to do it in a financially secure way.