BlogHomebuying May 13 2021

4 Questions You Must Ask Before Buying a Home

How to decide when the time is right for you to buy a home.

With interest rates low and inventory lower, it's hard for potential buyers to sit back and watch home prices soar while they hope to get in the game. But this kind of frenzied home-buying market can make it difficult to stay calm and make rational decisions, especially when you feel like the doors may be closing on your dream of homeownership.

A scarcity mindset focuses on the notion that there isn't enough to go around, and it leads to a focus on short-term decision-making while ignoring the long-term consequences. And when that involves a major purchase like a home, the consequences can be personally and financially stressful.

If a buyer rushes into a home purchase before they are ready, it can lead to buying a home that's too expensive, not the right fit, or overwhelming to maintain—and force that buyer to turn around and sell it too soon.

Fortunately, guidance from a good Realtor and a mortgage lender can go a long way in helping you decide when you are ready to buy a home. Here are some questions they might ask to help you determine if the time is right for you to buy a home.

Is your income stable?

When applying for a loan, you'll need to provide proof of income to show that you are earning enough money consistently to pay your mortgage. If you've recently changed jobs, you might want to give yourself a few months to ensure the new job is a good fit. After all, if it isn't, you may be faced with an unexpected job search and relocation.

If you are self-employed, ask yourself if you feel confident with your average monthly income and current cash flow to meet your mortgage payments each month, and consider your options if you have a slow month or lose an important account or client.

Do you have adequate savings and an emergency fund?

We've all heard the term "house poor." Owning a home and having nothing left to spend on anything else, in reality, means that the home owns you. Financial experts recommend having 3 to 6 months' worth of living expenses in an emergency fund, as well as a savings account to address emergencies, repairs, maintenance, or expenses that pop up both in your home and in your life.

Do you have enough for a downpayment?

Having a sizable (20% or more) down payment is ideal, and can qualify you for more attractive loan products, better interest rates, and spare you the cost of private mortgage insurance.

Is your credit in order?

Your credit profile and credit score will majorly impact what kind of loan you are approved for. Higher credit scores usually lead to lower monthly payments which could save you thousands over the life of the mortgage.

Once you've answered these basic questions, you'll be much more clear on if, when, and how you should buy a home. To find out if you're ready, or get help preparing yourself to be a homebuyer, contact a lending professional at lennarmortgage.com.

Search Results for query

January 05 2022

How to Prep Your Home When Heading on Winter Vacation

For peace of mind when you're gone on a winter trip, here a few simple tricks and tips you can use to get your home vacation-ready.

Read More

December 14 2021

FHA Loan Limits Increase for 2022

Check out how the FHA is making things easier for those hoping to buy a home in 2022.

Read More

November 10 2021

Pet-Friendly Remodeling Ideas

Here are a few ideas for making some pet-friendly changes to our homes to make them more fun, friendly and comfortable for our furry friends.

Read More

November 03 2021

Fall Garden Cleanup Checklist

Find out which chores to skip, which are must-dos, and how to keep your garden looking beautiful in the fall.

Read More

October 27 2021

Should You Buy a Home with Cash?

Paying upfront instead of obtaining financing is often seen as a way of getting a leg up on other potential buyers. But is it always the best idea? And why is it so common

Read More

October 19 2021

5 Ways to Make Your Offer Stand Out in a Tight Housing Market

With huge buyer demand and a shrinking inventory, this market means you'll need to be strategic, creative, and prepared in order to buy your dream house.

Read More

October 12 2021

Should I Buy a Home with an HOA?

In the excitement of buying a new home, it can be easy to overlook the presence of a Homeowners' Association, or HOA. But an HOA can have a lot of influence over your purchase choice, including your monthly payment, the money you need to set aside for...

Read More

October 04 2021

14 Brilliant Ideas for Decorating Your Porch This Fall

Simple and inexpensive solutions for a cozy, colorful porch that says "welcome."

Read More

September 23 2021

7 Surprising Things First-Time Homebuyers Should Never Do, According to Loan Officers

Loan Officers Rachel Alcaraz and Haley Aivazian share their must-follow tips for first-time homebuyers.

Read More

12345Last

Mortgage Calculators

Crunch the Numbers With Our Helpful Mortgage Calculators

Payment Calculator

payment calculator

Payment
Calculator

Affordability Calculator

affordability calculator

Affordability
Calculator

Refinance Calculator

refinance calculator

Refinance
Calculator

The Modern Digital Mortgage with a Personal Touch

Paperless. Effortless. Awesomeness TM

Simplify the home financing process with our Digital Mortgage. We'll be here to help navigate you through the entire process.

Get Pre-qualifiedWhat is a Digital Mortgage?