The volatile state of the real estate market has thrown many first-time homebuyers for a loop. You may be wondering, should I hold off on buying my first home for the time-being? It’s a fair question to ask.
Really, there is no right or wrong answer to this question. It all depends on your situation. Although the market is unpredictable, as long as you’re in a good situation, you should have no problem buying a home. However, you need to make sure that you are financially secure.
You can do this by answering some important questions, which we’ve listed below.
Should I Wait to Buy My First Home?
The unpredictable state of the housing market may have you wondering, “Should I hold off on buying my first home?” Before you rethink your plan or proceed as intended, here are some important questions you should ask yourself first.
Do You Have an Emergency Fund?
An emergency fund is an amount of money that can last you for six months without your regular income. This fund should cover regular monthly mortgage payments, groceries, utilities, and other expenses. If you have saved up for your emergency fund, that’s great! It can help you survive if you lose your income or find yourself in a financially difficult situation. This way, you can continue to make your regular house payments. In this case, you are in a good position to buy your first home.
Do You Have a Regular Source of Income?
Before you invest in your first property, make sure that you have a stable job. Having a regular source of income provides assurance that you will be able to meet your monthly mortgage payments. When you apply for a home loan, make sure the monthly payment amount aligns with your budget.
Do You Have a Strong Credit Score?
Having a good credit score is always beneficial when you apply for a loan. Your credit score can play a role in the rate you get. You can benefit from reasonable payment plans and a low mortgage rate, provided you have a good score.
Therefore, if you have a good score, investing in a property may not be a bad idea. If your credit score could stand to be improved, you may want to hold off. Right now, qualification requirements are stricter for borrowers because of the pandemic.
Investing in your first property can be overwhelming, especially right now when the market conditions are so volatile. But if you’re ready to buy your first home and you’re in a good financial position to do so, there’s no reason to hold off. Make sure you have a stable source of income, an emergency fund, and a good credit score. This way, you can buy your first property with minimal risk.
Ready to Get Started with Buying Your First Home?
Ready to pursue your dream of homeownership? Contact Mortgage Solutions Financial today! We can help make the process of your first home purchase easy!