Can You Afford a House? The Hard-Hitting Questions You Need to Answer
The prices of homes listed has risen to a whopping 32.6%. With that being said, you must ask yourself a series of questions before buying a home, with the first being if you’ll be able to afford a house in the first place.
We understand the question can be challenging to answer, but if you’re going to be realistic about home prices, you’ve got to ask yourself this question and some others before moving forward.
Do I Have Stable Income?
Once you’ve considered the topic of home buying, you’ve got to think about how you’re going to pay for the home after the deal has closed. If your job isn’t stable, the last thing you need to do is over-extend yourself.
You need to sit down and accurately review your finances. It’s helpful to assess the growth trend in your industry because if it’s on a negative spiral instead of a positive one, your job could be in jeopardy.
Do I Have Good Credit?
Evaluating your credit is something you should do before thinking about mortgage affordability. The reason is that if you don’t, you could pay a higher mortgage monthly than you’d like to.
Before buying your home, there are several things you can do to improve your credit score, including:
- Paying outstanding debts
- Paying bills on time
- Don’t use your credit card often
These are just a few things you can do that will help to boost your credit score over time.
Are the Market Conditions Optimal?
The only way to know if the market conditions are right for purchasing a home is to work with a knowledgeable real estate agent. Your agent will know about the current trends and prices of homes that are on sale.
They will help you to hunt for the right deal that will meet all your needs. If you’re still looking for a company to work for, the only choice is Hatch Realty.
Is there an HOA?
HOA stands for homeowners association, and while some communities have one, not all do. If the neighborhood you’re purchasing a home in has an HOA, you need to know the rules and fees.
If you don’t abide by these rules and pay your homeowner fees, you could face penalties. A good rule of thumb is if the community you want to live in has several amenities for those that live there, you should understand your HOA fees will be higher.
These fees will be used for the upkeep and maintenance of the area.
Can You Afford a House: Asking Difficult Questions
Asking yourself, ‘can you afford a house,’ is the first question in a series of questions you need to have the answers to. We hope our guide has helped you start a conversation that will bring you one step closer to homeownership.
Before you go, don’t hesitate to check out some of the other posts we’ve created about topics like business and finance.