When Are You Ready To Buy A House?

It is the American dream, to create your own wealth and live in a home that is all yours! This is what we have been taught through the years, and most still wish to reach this goal. While there are tons of loans out there to buy a house, are you ready to actually take the plunge?

When buying houses it is crucial to have a solid financial plan in place, as well as a strong financial foundation. What we mean by this is understanding all the costs that go into buying a house in Pittsburgh. What are the closing costs, insurance, utilities, how much does it take to renovate or maintain a house? These are all very important questions. If you do not have this understanding, it can be a big surprise and possibly a financially disturbing one.

So let's say you have a breakdown of all these expenses, you've spoken to multiple vendors, and feel that you understand the ins and outs of these topics. Now we want to look at your personal finances. Your lender will determine if you are ready to buy based off your income, credit score, and net worth. These all provide the lender with an idea if you are capable of paying back the loan long term.

There is an easy way to determine if you are ready to take on a mortgage with a personal approach to your finances as well. We've seen over the years many people who buy a house at market pricing, or over market pricing, then have to leave or aren't able to afford the house. What happens next is they need to sell, but now they need to literally pay to get rid of the house as well as the closing costs. The other concern is what if your income goes down, or disappears? This is not a fun discussion, but a very realistic risk. We have suggested having at least 4-6 months expenses in cash at all times. This will allow the homeowner in Pittsburgh to cover at least 4 months of mortgage payments and bills, while searching for another job or income opportunity.

If you have checked all these boxes, Cash for Homes Pgh would give you the green light to begin searching for homes. Planning for the worst is sometimes a good practice, especially when working with real estate which can not be easily liquidated and sold. Building a sound knowledge on the subject, saving up a sizable amount in cash, and paying a reasonable price for the market are great ways to have a very successful lifestyle as a new homeowner in Pittsburgh.