Are You Ready to Buy a House?

Sometimes it stinks to be a renter. You’re trying to get to sleep when the guy in the apartment next to you starts in on his band practice. Or you’d really like to paint the living room green and install a wet bar, but the landlord says no. Maybe you’d just like to settle down and enjoy the comfort and financial appreciation of owning your own home. But are you really ready to make that leap? Here are a few questions to keep in mind:

Can you afford it?

It’s tempting to think that buying a home just means replacing your monthly rent payment with a monthly mortgage bill. But there are a lot of other financial commitments that come along with buying a house. First, you’ll be expected to put down a down payment when you first purchase the home. This may be as much as 20), the money really adds up when you’re considering a 30-year loan! Your credit score will directly impact whether you qualify for a mortgage and, if so, what rate you’re eligible for. Getting the lowest possible rate will save you a lot of money in the long run.

If your credit score isn’t great, take some time to improve it before you jump into the wild ride of homeownership. To learn how to fix your credit, visit the Carreon & Associates website for tons of great information about debt management and repairing credit on your own. They also offer an e-book titled “Credit Restoration & Debt Negotiation” that’s really helpful if you plan to negotiate with the credit bureaus over any incorrect information in your credit report by yourself.

Buying a house is a big commitment, but it does have many rewards. For one, real estate values increase over time (or “appreciate”), so the house you buy now may be worth a lot more in the future. It’s also nice to be able to come home and fix up your space to meet your needs. If you think you might be ready to buy a house, meet with a mortgage broker in your area to see get an exact estimate of what you can afford. Be realistic with yourself and you’ll soon be on your way to the joys of homeownership.

Sarah Russell, aka "The Sexy Secretary," is a connoisseur of living the good life on a budget. Check out her website at www.thesexysecretary.com for more fabulous ideas on how to trim down your expenses without reducing your quality of life.