2020 is the year of possibilities. How often can you say “It’s the beginning of a new century,” right? You might be ready to kick off the year on a high note by starting to look for a home of your very own. While buying your first home can be an exciting experience, it can also be a bit mentally and financially overwhelming. That’s why it’s important to prepare! Below, I list five questions you should ask yourself before buying a home.

Why am I buying a home in the first place? 

Purchasing a new home is a serious decision, as it’s one of the largest financial decisions a person can make. Before you start applying for a home or loan, you need to be sure that it’s the right decision for you. Some realtors call this the “Big WHY of buying.” Will buying this house help contribute to any long- or short-term goals? Are you in the right financial space that you feel comfortable making a commitment to purchase? If you feel that you’re ready to make the big “move,” then you just might be! 

Five-year plan: Do you still see yourself living here?

Think ahead five years. What do you see? If you’re comfortable living in the home you’ve set your sights on, you’re in the right headspace! Ideally, you should stay in your first home for three to five years before moving again. If you’re thinking of relocating to a different area in the near future, or if you have plans to grow your family and need more space, it’s best that you wait to buy a new home. This way, you’re able to put money back for a larger down payment whenever you’re ready to purchase a home. 

How much can I really afford to pay?

This is one of the most important questions you will ask, and it’s imperative that you’re honest with yourself. Your monthly mortgage payment should be no more than 25% to 28% of your gross income. Don’t stretch yourself too thin. My advice is to take a deep dive into your spending habits and financial records. If you have several loans you have to pay each month, consider renting until they are paid or mostly paid off. Budget how much you spend on bills, groceries and luxuries – if you can afford to live comfortably, you’re ready for the next step.

What do I want versus what do I need? 

What are the most important facets of a home to you: age, location, size, number of bathrooms, school district, a backyard or garage? Make a list of absolute must-haves and a separate list of features you would like in a home but aren’t necessary. The housing market boasts some tough competition, but you should never just “settle” when it comes to purchasing a home. Of course, if the price is right and it checks off a good bit of your expectations, then my advice is to sign, seal and deliver. 

How do I get started? 

If you’ve asked yourself the questions above, feel comfortable with your answers and are ready to put yourself out there and take the next step, then it’s time to search for a trusted realtor. Your agent should work with you from start to finish and make sure you’re well taken care of.

If you have any questions or if you’re looking to purchase a home in Sarasota, I’d love to be your guide. Give me a call today at 941-225-1500, or email at AmyChapman@michaelsaunders.com.