Buy a Home with Confidence
Here's practical tips before putting in an offer.
You're ready to buy a home if...
As your realtor, I want to find a home that works well for you and your family long-term. Let's walk through a few things to consider, so that you can live comfortably in your new home with peace of mind.
1. You have healthy savings, with no major debt.
Having no outstanding debt (credit cards, student loans, car loans) and an emergency fund of 3-6 months of expenses will set up your home ownership journey for success.
2. You can afford monthly house payments and home maintenance.
Buying a house is an investment. As your realtor, my goal is to understand your overall financial situation to help guide you to a home that's within your budget. Ideally, your monthly house payment should be no more than 25% of your collective take-home pay. Otherwise, you may find yourself unable to take care of home care and maintenance. To make sure that doesn’t happen, here’s what’s included in that 25% limit:
- Principal
- Interest
- Property Taxes
- Homeowners Insurance
- Private Mortage Insurance (PMI)
- Homeowners Association Fees (HOA)
3. You have a good down payment.
A 20% down payment is ideal since it means you’ll avoid PMI payments (and you’ll end up borrowing less). If 20% is not possible, a 5–10% down payment is okay, especially if you’re a first-time home buyer. Just plan to pay that pesky PMI as soon as possible. Remember, the more you put down, the less you have to borrow, and the sooner you’ll be debt-free!
4. You can pay your own closing costs.
Some home sellers cover closing costs to sweeten the deal—but don’t bank on it, especially in a market like this one. Saving 3–4% for closing costs is a good rule of thumb to cover:
- Loan origination fee
- Home inspection
- Appraisal
- Prepaid property taxes and mortgage insurance
- Title insurance
- Recording fees
- Underwriting fees
5. You can cash flow moving expenses.
Buying a house means you'll be moving! Movers can be $900-$2400 for a local move (or as cheap as a few pizzas for your friends with trucks). Besides the heavy lifting part of your move, here are other expenses to be ready for:
- Boxes, bubble wrap and other moving supplies
- Deposits for utilities
- Cleaning supplies
- Appliances that aren’t included in your home purchase
- Any pre-move-in upgrades like painting, new furniture and closet organization
6. You plan on staying put for a while.
Another thing to think about before you buy a house is the location. Are you planning to stay there for more than a year or two? Remember, the longer you stay put in your home, the more equity you build.
7. You have an expert real estate agent you can trust!
It’s not easy to find a house you love that’s also within your budget — that’s why nearly 90% of all home buyers work with agents who eat, sleep and breathe real estate to purchase their home. Having a buyer’s agent by your side brings two big benefits:
- Save money
- Save time
I would love the opportunity to earn your trust and help you purchase your dream home!
Explore the possibilities of homeownership with USDA property loans! They are dedicated to helping you discover financing options that suit your needs. Learn more about USDA loans and how they can make your dream home a reality.
