Ready To Buy Your First Home, Here Is Your Quick Checklist

Posted by Lauren Spencer on Tuesday, April 8th, 2014 at 3:35pm.

Buying your first home is a major milestone in your life, similar to graduating high school or moving out of your parent’s house.

When you buy a Santa Cruz property, you are making a long term investment decision in your future and potentially taking the first step toward your future financial security. However, buying a house before you are ready can actually be a negative move that puts a cramp in your plans.

It is important to assess where you are in life, so that you know whether or not it’s the right time to buy a house.

Some people buy their first home at 21, others at 30 and some might continue to rent for the rest of their lives – the decision depends on personal circumstances. But how can you determine for yourself whether you are ready?

You Have All Of Your Finances In Order

Is your credit score looking healthy? Have you paid off your credit card debt, student loans or personal loans? If not, it is important to clean up your finances and pay down your debts before you start looking for a home, or you will be adding a mortgage on top of the debt before you are able to handle everything.

You Have Enough Savings For A Down Payment
Just because you can buy a home for as little as 3.5% down payment, doesn’t mean that you should. You will have your dream home, but your mortgage payments will be so high that you won’t have any money left over for repairs or improvements. Also, you will end up paying thousands of dollars more in interest over the length of the loan. The bigger down payment you can save, creating equity in your home, the better.

You Are Earning Enough To Comfortably Afford The Mortgage Payment
Financial experts recommend that you never take a monthly payment that is more than 25% percent of your take home pay – including taxes and insurance. Stretching yourself thinner will leave you little room for error and if your income drops for any reason – you will quickly find yourself in hot water.

You Are Happy To Settle In One Place
Could you see yourself settling in this location for the long term, or are you still considering moving elsewhere in the country or living abroad? Buying a home is a long term investment, so if you think that you might possibly move somewhere else in the next five years, you might want to think twice about buying a home and rent instead.

These are just a few of the signs that you are ready to purchase your first Santa Cruz property.

For more helpful tips and information about buying and selling a Santa Cruz home, email me at lauren@laurenspencer.com or give me a call at 831.662.6522.

For additional real estate information, please visit my home page at www.MySantaCruzRealEstate.com

About Lauren Spencer

Award-Winning Santa Cruz REALTOR®

Lauren Spencer is your local real estate expert, specializing in Santa Cruz real estate and surrounding communities—this is where she lives, works, and plays too. Let her know your questions about the community and county and she'll be happy to fill you in on all you want to know! Lauren Spencer has consistently been voted best local REALTOR in Santa Cruz and is always happy to offer her advice and expertise. Call her at: 800.226.4717.

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