Summer has always been the time for beaches, out-of-town excursions, nature trips and everything else in between. It’s a time for escapades and memories that are worth keeping. But is it also a time to have a new home?
Aspiring home buyers in the Northwest region, the few months of summer can be the best time to look into different options for their first home. The Northwest Multiple Listing Service points out that the recent rise of new listings in the market can ease the pressure towards interested buyers.
Northwest MLS reports 13, 497 new listings in May, showing a gain of almost 27%. It didn’t take long for experts to agree on the matter.
According to his analysis, Ken Anderson, president, and owner of Coldwell Banker Evergreen said that these new listings are at a “seven-year high and fifth highest all-time.” J. Lennox Scott, chairman, and CEO of John L. Scott Real Estate follows suit saying that “May was a Grand Slam month for housing activity” and that the housing market is “in full swing and as intense and frenzied as it has ever been.”
But what are the things you should consider especially if you’re planning on buying a house for you and your family?
Weigh In The Pros and Cons
Just like any major decision, it’s smart to keep in mind both its advantages and disadvantages. In owning a home, the biggest advantage is that it’s yours. Also, rather than seeing your money go away to pay for rent, your mortgage payment builds equity since it will be applied to your principal. Your home becomes one of your assets and it could potentially become a money-maker.
Some of the drawbacks of homeownership lie on the maintenance and improvement expenses. When renting, the responsibility of it goes to your landlord. Another factor to think about is that if you think of moving out, you also have to think about certain obligations before actually moving. One thing to think about is also the possibility of the real estate market staying stagnant or worse: declines.
Check Your Finances
Other than saving up for about 20% of the amount as a down payment for the house, there are other factors that make up the financial side of home buying. A rule of thumb would be that choosing a house that you can afford is always the key. If it’s possible to negotiate the price, do so.
Lowering your DTI ratio, cutting spending habits, and strengthening your credit score also needs to be looked into. Also, keep a strong savings account. These are important elements when applying for a mortgage.
Finally, it’s always best to emotionally prepare yourself when making this decision. Other than saving up and boosting your credit score when applying for a loan and buying a new house, think about the possible concerns that could pop up as you move forward with this endeavor.
Things like this take time. It gives you room to think things over. And while the housing market shines a little bit brighter for some parts of the country just like in the Northwest region, homeownership is a major decision that needs to be weighed in carefully.