Am I Ready To Buy My First Knoxville Home?
“Am I ready to buy my first home?”
At some point, when you think about buying your first home, you should ask yourself this question and think long and hard before coming to a decision.
A home is a large investment. A home is a commitment. And, buying a home isn’t something that is for everyone.
You may be at a stage in your life where it feels like everyone you know is buying their first home. But, buying a home is a personal decision something that needs to fit where you are in your current life cycle.
In this post, we’ll take a closer look at the question, “Am I ready to buy my first home?” And, we’ll see what things every buyer should think about before deciding to become a homeowner.
What Does Owning A Home Mean?
Owning a home is an investment. But, as with all investments, there are expenses involved. As a first time buyer, it’s important that you are ready to take on these expenses for the long haul.
There’s much more to owning a home than just your monthly mortgage payment. You’ll also have homeowner’s insurance and property taxes that are wrapped into your monthly payment. Then, there are the other expenses like trash pick up, rural metro fees, and homeowner’s association fees. These items can add up on a monthly basis, so you need to be prepared and know what you’re signing up for.
In addition, you’ve probably heard about the importance of an emergency fund. You may have some kind of emergency fund as a renter, but when you own a home, that emergency fund is so much more important. What happens when an appliance breaks or the roof leaks? It’s important to have a fund dedicated to those unexpected situations.
You should not forget the many joys that come with owning a home. A home gives you a space of your own and a place truly to settle into.
Do I Have What It Takes To Buy A Home?
The vast majority of first time buyers need a mortgage. In order to get a mortgage, you’ll need steady income, decent credit, a history of employment, and not too much debt.
When you apply for a mortgage, a mortgage company needs to see that you have the ability to pay back the money you’re borrowing. This is why your finances, debt, and credit are so important to them.
Credit shows your lender that you’re responsible with money and that you pay your bills on time. While credit varies based on the lender and loan type, there are certain requirements that you must meet in order to apply for a loan. Generally, it is necessary to have at least a credit score of 580 or higher.
As far as income, you’ll need to show that you have sufficient, regular income to cover your monthly mortgage payment. On top of that, you’ll need to show that your current debt doesn’t make it too difficult to pay a mortgage payment.
Does Owning A Home Fit My Lifestyle?
You’ll reach a certain time in your life where it feels like everyone you know is buying their first home. The thing is, thought, buying a home needs to fit your personal lifestyle. It may not be right for you at this current moment, but it could be for you down the road.
When you buy a home, you’ll want to make sure that you stay in a home for at least 3 to 5 years. If you don’t plan on staying in a home that long, buying a home may not be right for you. If you want the flexibility to pick up and move, homeownership may not be right for you in this current time.
In addition, if you worry too much about the expense of owning a home, it may not be the right time for you to buy a home. Renting can be a nice safety net if you don’t want to worry about maintenance costs.
Buying a home is a great experience. If you decide that buying a home isn’t right for you now, there is nothing wrong with it.
Buying your first Knoxville home is an exciting and overwhelming experience. If you’re like most first time buyers, you may not be sure where to start. If there is anything we can do to help you in your home search, please do not hesitate to contact us. We’ve helped countless homeowners buy their first home and we’d love to do the same for you. Rick can be reached at 865-696-9002 or via email at Rick@KnoxvilleHomeTeam.Com. Kati can be reached at 865-696-1888 or via email at Kati@KnoxvilleHomeTeam.Com.
Are you ready to start your home search? Visit our home search page to get started today.