Mark Hunke

Denver Real Estate Specialist

The Mark Hunke Team
Your Denver Real Estate Experts
Call Us Today
303-619-7793
  • Home
  • Luxury Communities
    • Castle Pines Village
    • Chenango in Centennial, Colorado
    • Cherry Creek
    • Cherry Hills Village Real Estate
    • Denver’s Country Clubs
    • Denver Executive Homes
    • Denver Highlands
    • Greenwood Village
    • Highlands Ranch Real Estate
    • Observatory Park
    • Park Hill Colorado
    • Polo Grounds Colorado
    • The Preserve Colorado
    • The Pinery, Parker, the Club at Pradera
    • Red Rocks Country Club, Willow Springs, Willow Brook
    • South Aurora, Colorado Real Estate
    • Washington Park
  • Luxury Home Search
    • Luxury Home Search Form
    • Featured Properties
    • Map Search – Denver Luxury Homes
    • Find My Dream Home
    • Denver Relocation Guide
    • Get Luxury Property Alerts
  • Buyers
    • Buying a Home
    • Step 1 – Choose a Realtor
    • Step 2 – Get a Loan!
    • Step 3 – Research the Neighborhood
    • Step 4 – Submitting the Offer
    • Step 5 – Closing The Deal & Moving In
  • Sellers
    • Sell Your Home
    • Selecting a Professional Denver Luxury REALTOR®
    • Are You Ready to Sell a Luxury Property in the Denver Area?
    • Determining the Listing Price
    • Real Estate – Selling Your Home FAQ
    • What’s the Best Listing Price For Your House?
  • Finance
  • About
    • About Mark Hunke
    • Denver Real Estate Blog
    • Letters of Recommendation
    • Realtors – Join The K Company
  • Contact

Ready to Buy a Home? 5 Questions to Ask Yourself

October 26, 2016 By Mark Hunke

Most people are excited about homeownership, but not everyone is actually ready to buy a home. Before you make the plunge, review these five signs and make certain that you have what it takes – both financially and mentally – to buy your very first home.

#1 – Are You Planning to Stay?

Most people make the decision to buy a home because mortgage payments are lesser than rent, or because they’ll get far more square footage and luxury in their own homes for the same price. However, it’s important to remember that homeownership comes with other costs, such as insurance, mortgage fees, repairs, and maintenance. Unless you’re planning on staying for at least five years, you aren’t going to break even and start reaping the benefits of those lower payments.

Luxury Home in Morning Light#2 – Are You Preapproved?

These days, preapproval is an important step when you’re ready to buy a home. It’ll help you understand what you qualify for, which can help you (along with your real estate agent) make the right choices about the homes you see. This process can take some time, so make sure you’re prepared by getting it done early. Check with your personal bank, or if you wish, ask your real estate agent for options.

#3 – Is the Timing Right?

Take a look at your current situation. Are you stuck in a lease for another eight months? Do you need to find a place to live within the next 30 days? If you answered yes to either of these questions, then you may not be ready to buy a home. Ideally, you want to be ready to buy, but able to wait it out for the best deals. Right now, it’s still a buyer’s market, so take advantage of that.

#4 – Do You Have Money in Savings?

Aside from a down payment of as much as 20% of your new home’s purchase price, you should have a nest egg set aside for things like home maintenance, emergencies, and more. If you do not feel comfortable with the amount of money you have in savings, then the time is not right to buy a home. Wait until you are completely financially stable. Ideally, you should have enough money in savings to pay your mortgage for three to six months in the event you lose your income, too.

#5 – Are You Prepared for Bumps along the Way?

Television programming makes the homebuying process look incredibly simple. One day, a family is looking at a home; the next, they’re settled in and having the times of their lives. Unfortunately, this is rarely how it works. There will be some bumps along the way. You may have a problem during your inspection, or underwriters may find an issue with your mortgage application. If you feel prepared to handle these things, you’re ready to buy a home.

Whether or not you’re ready to buy a home depends on many things, but the five factors listed above will play an important role. Make sure you’re planning to live in your home for at least five years, you’ve obtained preapproval, the timing works for you, you have money in savings, and you’re prepared for a few things to go wrong. This will make the process as painless as possible and help you find the right home for your needs.

Filed Under: Home Buyers

Recent Posts

  • New Home Sales Slow Despite Lower Prices
  • Higher Credit Scores are Coming: Are You One of the Lucky Ones?
  • The Housing Market Slump Still Exists in Some Locations
  • Fewer New Builds – Why the Sudden Slowdown?
  • Do Walk-In Closets Improve Home Values?

Categories

  • Centennial Colorado
  • Cherry Hills
  • Denver Area
  • Denver Real Estate
  • Energy Efficient Properties
  • Financing
  • Greenwood Village
  • Highlands Ranch
  • Home Buyers
  • Home Rentals
  • Home Sellers
  • Investment Properties
  • Job Market
  • Luxury Homes
  • Parker Colorado
  • Real Estate
  • Uncategorized

Search for Homes

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
5-star logo
Equal Housing
Blue Fire Group    Real Estate Websites
© 2023 Copyright
LAC
Buying Buddy    Powered By Buying Buddy ®