One of your New Year resolutions is to own a home. You have a family, or you have an income or you feel it is just the right time to buy a home. Well, this is a good thought. Owning a home is an achievement for many of us today. However, we have to deal with finances that are limiting. All resources are naturally scarce and the needs always seem numerous.
As for owning a home, what is your drive? One would own a home to satisfy personal needs of security and shelter or just personal satisfaction. On the other hand is one who desires to make an investment in a House. Whichever way you derive your motivation finances need to align towards that goal.Here are some checkpoints to ascertain if 2018 is your year to buy a home.
1.High credit score
A good Credit score report is key and the first you will have to look into. A lender will have the confidence to walk with you towards your dream if you have an impressive credit score. Credit score reports can be accessed from various websites such as Credit Karma, Transunion, and Experian. The scale is usually 300-700 score. A score of less than 300 is not good enough to get you a good lender If in 2018 your credit score is more than 700 then perhaps you could own a home this year
2.Your Income should raise 30% towards your purchase
The rule of thumb in purchasing or investing in a home is that you should be able to contribute 30% of your income towards the Purchase. If this percentage is lower then maybe it is not yet the right time to consider the purchase.
3.You should have active monthly savings
You should have active savings account that you contribute to on regular basis. This allows you to achieve your goals despite engaging in your venture of owning a home.
4.You have an emergency fund Apart from the monthly savings
You should have funds set aside for any unforeseen eventualities such as accidents, loss of income or incapacitation.
5.You can raise a down payment of not less than 20% of the purchasing price
As you step out to buy a home, you should have funds that will enable to pay at least 20% of the cost of your house. A down payment of a lower percentage will have you pay a private mortgage. This will make your purchase costlier in the end.
6.Other goals and financial expenditures
Do you have other major financial responsibilities or goals to achieve this year? Buying a home is a costly venture. Apart from the cost of the house itself, there are unaccounted costs that go into making it a home. If you have other financial responsibilities then you will need to prioritize and you might need to for-go some of them even if it is the house itself.
7.You do not have any outstanding debts
It is normal to have debts but can they be accounted for? Are they being serviced adequately? If you are indebted then you cannot afford to add another debt to your portfolio yet, you would rather work on your current debts first before considering the purchase.
8.You are not planning to relocate soon
It will not be worth buying a home if you plan to relocate from your house in five years time A house will be more profitable if you will reside in it for not less than 10 years before putting it back into the market.
9.Have you have done your research?
Well, you could say that is the reason you are here in the first place. However, do well to compare prices in equally good neighborhoods for the kind of house you would wish to acquire. It could save you some money. So are you financially-sound to own a house 2018? Set your priorities, analyze your finances and if all the ten points above can be satisfactorily answered then yes you can own a home in 2018! If you are looking for a real estate consultant who could guide you through the process visit Propbuying they have years of experience in dealing with property buying across budgets in Pune. They are the leading real estate consultants in Pune.