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

July 23 2021

5 Top Features Homebuyers Want in 2021

The past year of stay-at-home life has changed the way we live and think about our homes, and those changing priorities are driving the way buyers approach their options. Even in a hot market, having the following amenities can boost your buyer interest (and...

Read More

July 21 2021

Is an FHA Loan the Best Choice for You?

There's more than one path to homeownership and a variety of home loan products that can help make it happen. One of those is an FHA loan. Here's how they work, and what's new and different about them.

Read More

July 14 2021

2021 Home Renovation Trends

This year, home remodeling dollars are flowing toward projects that improve our health, increase our privacy, boost our mood and make our homes a healthier place to be. Here are some ideas to steal as you plan your next house project.

Read More

July 07 2021

6 Surprising Ideas for an At-Home Staycation

Here are some ideas to help make your time staying close to home, time well spent —without spending much.

Read More

June 30 2021

4 Long-term Strategies for Paying Off Your Mortgage

How to save time, money and pay off your loan in a way that makes sense for you.

Read More

June 23 2021

3 Things You Should Never Do If You're Getting Ready to Buy a Home

Here are some of the top mistakes you should never make before you buy a home.

Read More

June 16 2021

Pest-proof Your Home and Yard for Summer

Here are some tried-and-true strategies for keeping bugs and other pests at bay during the summer months

Read More

June 09 2021

4 Ways to Weatherproof Your Home for Summer

How to inspect, repair, and get your home ready for warmer months

Read More

June 03 2021

Budget-friendly Outdoor Entertaining Hacks

Host a fab get-together without breaking the bank with these budget-friendly outdoor hacks.

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?