A Few Important Questions To Ask Before Buying In This Hot Market

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MINT HILL, NC – The real estate market is still very hot and doesn’t look like it will cool off anytime soon. If you’re planning to buy a house in this market, you want to ask a few questions first.

Will I Be Living Here for At Least Five Years?

Right now, if you don’t plan to live in the home you buy for at least five years, you may not want to buy. It could be a big mistake if you don’t stay long enough. Without staying at least five years, it will be hard to recoup the cost of buying the home when you sell it.

Make sure you plan to stay in the new home for at least five years. Longer is better, but if you know you won’t be able to stay, it might not be smart to buy right now.

Can I Afford 20% for the Down Payment?

While you don’t have to put 20% down to buy a home, right now, it’s a big help. With so many competing offers, a higher down payment can help you win the bidding war. Plus, it will help you avoid paying private mortgage insurance and if the market turns, you’ll have a little bit of equity built up, already.

Do I Need to Buy a House Right Now or Can I Wait?

You might need to buy a home right now because you’re relocating for work. However, if you don’t need to buy a house right now, it might pay off to wait. It depends on your situation and this is an important question to ask yourself before you buy a house in this very hot real estate market.

Will My Housing Cost Be Lower than 28% of My Gross Income?

Spending more than 28% of your gross income on your home can be a mistake. It can cause you to struggle to make the payments if things change rapidly. This was one of the reasons so many buyers struggled in 2008. They were overextended and when the economy turned, they couldn’t make their payments.

While there are exceptions to this rule, most home buyers should never extend past 28% of their gross income. This isn’t just your mortgage payment, either, it’s your housing expenses including taxes and insurance.

Ask these questions before you decide to buy a house in today’s hot real estate market.

I would love to be part of your journey when the time is right for you. If you ever have a real estate question or need, or know someone who does, trust that you can turn to me.  I will help you make the right move! Anna Granger (704) 650-5707 | annagrangerhomes@gmail.com | www.1stchoicepropertiesinc.com

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