Spring time is the best time to sell your home – we’ve all heard this one before, right?
If you’re selling your home, it’s probably because you want to buy a new one. Is spring time the best time to BUY a new home?
It depends.
It depends on if you’ve considered all the costs that go into purchasing a new home.
A lot of people will argue that they’re paying themselves when they buy a new home, or they’ll argue that their mortgage payment is similar to their rent payment. While this may be true, they’re not considering all the facts.
What percentage of your income can you afford to spend on a home?
A lender may give you a loan that has monthly payments which are 28% or less of your gross income, but if you spend 28% of your income on a mortgage and 30% on taxes, then will you be able to live on 42% of your income and still save for emergencies and retirement?
How much are you going to put down on the home? If you’re not going to put 20% down, then have you considered that you’re going to have to pay PMI? Have you saved enough that you’ll have money left over after making the down payment to pay for moving expenses, furniture/decorations, and still have an emergency fund in place?
Have you considered how much you’ll have to pay for closing costs, title insurance, inspections, etc.? Are you ready for the added responsibilities of maintenance, yard work, replacing appliances when they break, etc.?
There’s nothing wrong with buying a home…if you’re actually prepared to do so. You don’t want to purchase something that’s going to end up being a burden on you and your family.
