Have you been renting for a while, and have been thinking about whether it's the right time for you to take that leap and buy for the first time? You are not alone! Every first time home buyer goes through the process of figuring out whether they are ready to buy a home.
This is a big decision, and there are a great deal of "signs" that can let you know that you may be ready to purchase. If a handful of the below signs apply to you, I invite you to reach out and see whether now is the right time for you to purchase a home in San Diego.
Have you found a city that you love? Many young renters decide to rent not only for financial reasons, but also because they do not want to be tied to a single city (or state, or country!) If you feel like you have settled down in the city you're living in, it may be the right time for you to buy. That being said, buying a house does not mean you're tied to one part of town forever. You can always choose to rent out your property, or sell it down the line. However, this is a much larger responsibility than simply giving your landlord 30 day's notice and moving out. If you love the city you're in, and could see yourself living there long-term, consider purchasing a property.
Your finances do not need to be perfect in order to purchase a home. However, there are certain items that you will need in order to qualify for a loan. In most cases (except for VA loans), you will need to have a down payment saved up. Your loan officer will also be studying your revenue sources, credit score, and debt to income ratio carefully. His responsibility is to make sure that you will be able to make your monthly mortgage payment before approving you for a loan. If you are ready to get pre-approved for a loan, use the form on my page "Request a Loan Pre-Approval."
Are you sick and tired of paying rent to your landlord month after month? While renting is a great option for many people, when you are getting ready to buy a house, it can feel wasteful. After all, you are funding your landlord's mortgage payments, rather than making mortgage payments of your own. When you own a house, your mortgage payments go towards YOUR home, not someone else's. You are building equity in something that is likely your largest investment. Many first time home buyers are surprised to see that with the amount of rent they pay each month, their monthly mortgage payment on a comparable place is not much more expensive. This is money that could be directly benefitting you, helping you secure your financial future, rather than doing that for someone else. Feel free to play around with my Mortgage Calculator to estimate what your monthly payments would be.
Landlords have lots of rules for their tenants. After all, they are allowing their tenants to live in and use a home that is in their name! This being the case, they are likely going to ask you to leave the space close to how you found it. Landlords often ask that heavy pictures aren't hung, walls don't get painted, etc. They are simply trying to protect their investment. However, for the renters, this means that their space can feel bland and uninteresting. If you are ready to create a home that suits your taste and your lifestyle, buying a property is the way to go. You can buy a fixer upper and do a great deal of work, or you can buy a move in ready home and make small tweaks here and there. Either way, though, you are not at the mercy of your landlord. You will call the shots, and that is empowering!
Often, renters decide to buy because they are recently married, have had a baby, or have been living together for a long time. They feel that they are ready to take the leap, and are ready to own a home together. This is a beautiful step in any relationship! Two people getting their first set of keys on a home they own together is a big deal. Similarly, if the family has a new addition, perhaps more space is needed to accommodate the wonderful life change.
Final Thoughts? Renting is great for certain times in your life. If you are planning to leave your job, move away from your city, do not have your finances in order, etc, it may be a great time to rent. However, if some of the above "signs" apply to you, it may be the right time to consider buying a home!