Are you dreaming of buying a home in the beautiful state of Arizona? Whether you’re a first-time homebuyer or a seasoned real estate owner, purchasing a home is a significant financial decision that requires careful consideration.
Before you take the leap, here are five essential questions you should ask yourself to ensure you’re fully prepared for homeownership.
- Are We Prepared for Maintenance & Repairs?
Owning a home comes with its share of maintenance & repairs. It’s estimated that home maintenance can cost around 1% of the home’s value per year. It’s crucial to have a safety net, so having 3-6 months of expenses in an emergency fund is a wise move. This fund can help cover unexpected repairs or maintenance costs, giving you peace of mind as a homeowner. - Do We Have Enough Saved?
At a minimum, you’ll need a down payment (at least 3%) & closing costs (1-6% of the purchase price). Plug your savings into a mortgage calculator to ensure the monthly payment isn’t too high. Additionally, plan for a few thousand dollars in moving costs, painting, & supplies during the first few weeks in your new home. Proper financial planning will help you avoid any unpleasant surprises & ensure a smooth transition into homeownership. - Can We Really Afford This Monthly Payment?
If the mortgage payment is higher than your current rent, practice making that payment for a few months. This will help you see if you can still manage your other expenses comfortably. It’s important to create a realistic budget that includes not only your mortgage payment but also other costs associated with homeownership, such as utilities, insurance, & maintenance. - Are We Being Proactive with Our Credit?
Your credit score plays a crucial role in securing a favorable mortgage rate. Check your credit report & fix any errors. Lower your credit utilization by paying off credit card statements early & asking for a limit increase. These steps will boost your credit score & increase your chances of getting a better mortgage rate. A higher credit score can save you thousands of dollars over the life of your loan. - Will Buying a House Impact Our Other Goals?
Consider if you can still save for retirement, take trips, & enjoy your lifestyle after buying a home. Reflect on your priorities & ensure your monthly budget supports your goals. It’s essential to strike a balance between homeownership & maintaining your overall financial health. Make sure that buying a home doesn’t hinder your ability to achieve other important life goals.
If you’re ready to start your home buying journey in Arizona, I’m here to help! With my expertise & knowledge of the local market, I can guide you through every step of the process!
Dawn Forkenbrock | Arizona Realtor, Real Broker 🌵
🌐 http://theforkenbrockgroup.com
📱 Call/text: 480.220.0215
📨 dawn@theforkenbrockgroup.com
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