Is this the right time for you to buy a new house? Your decision should be based on your financial well-being and not the housing market.
When it comes to home buying, these are the two common reasons that make people hesitate: time and money. Are you committed enough to plant roots for long? Can you afford the expenses that come with a down payment, mortgage, and home upkeep?
Before you make that important decision, make sure to first read this checklist by Trulia and find out if now is the right time for you to buy a house:
Should you buy before home prices go higher?
With the home prices getting higher in the past five years, should you buy now before the prices even go higher? The best answer would be, do what's best for you. If you are planning to stay in your house for long term, the price fluctuations shouldn't make any difference. After all, the primary reason that you are finding a home is a place to live, and the opportunity to grow equity over time. Overanalyzing the market is not going to help you when home buying.
Do you have 20% downpayment?
You could be forking over $166 per month - if you borrowed $200,000 - and it's not an insignificant amount of money. Not having 20% down payment in your hand can be a very expensive proposition.
Do you have a room in your budget for monthly expenses?
Mortgage is your heftiest monthly payment, and if you have it on fixed-rate, your principal and interest will remain a flat monthly fee, regardless of what's happening in the overall economy. Taxes are set to rise at any point, and if you live in a community governed by HOA, there are mandatory dues. Do you have enough wiggle room for these types of rate hikes? If you have a tight budget that you might miss payments, maybe you are not in the strongest position to buy a house.
Do you have money for maintenance and repairs?
You only don't have mortgage to worry about - there are also cleaning the gutters, replacing the roof, fixing the HVAC, refinishing the floors, calling the plumber, installing a new dishwasher, and repairing the broken garbage disposal. Do you have enough money to set aside some for these extra expenses?
