Before starting the house hunt, there are a few things buyers need to consider.
- Credit score: Lenders are generally looking for buyers to have credit scores of at least 620 nowadays. Although the Federal Housing Administration will extend loans to borrowers with credit scores as low as 580, most banks are imposing higher scores.
- Reserves: Even when renting, financial advisers recommend saving four to five months’ worth of expenses in case of job loss or any other unforeseen event. Homeowners should add an additional two months’ worth to their savings.
- You employment situation. Will your job still be in the same location in the near future. If you have to relocate and it takes some to time to resale your home, can you afford the rent and mortgage payment? If not, are you prepared to be a landlord and will the rent cover the mortgage payment and other expenses take can occur.
- Settling down: Buyers should think about if they see themselves living in the same place for five to seven years. Home ownership is not just a financial decision, it’s also a lifestyle choice.
Thank you for reading this post. If I can ever be of help in finding you the perfect property here in the Napa Valley, please email me at Curtis@NapaValleyAddress.com.
Your Broker Extraordinaire, selling Napa Valley Real Estate from its heart, Yountville
My website & blog: www.NapaValleyAddress.com