Do you have the characteristics to be a home buyer?

Do you have the characteristics to be a home buyer?
Did not know you needed certain characteristics to be a home buyer, did you? Well, you do not really, but it definitely helps to have them because the following ones will help you determine if you will make a good home owner!

Characteristic 1: You conform to the market.
What do we mean by "conforming?" We mean that you have researched the market and have realistic expectations of what you can afford. On the other hand, if you are a potential buyer who says, "All these homes are overpriced so I am not going to pay that much money," then you are not really serious about owning a home. The market sets overall prices, not you!

Characteristic 2: You have savings!
Ideally, you have enough in savings in order to pay two to three months of mortgage payments. This is a reserve, and mortgage lenders love people who have the financial wisdom to prepare for the unexpected (job loss, illness, etc.).
Lenders can see that you are a minimal risk and are more willing to loan you money for a mortgage.

Characteristic 3: You love to do maintenance (or can at least tolerate it)
There is no doubt about it - you have to do upkeep on a home if you want to maintain or even increase the value of your property. There are windows to wash... a lawn to mow... and many minor repairs along the way. Some people love the challenge of this; others hate it. If you hate it, then home ownership is not for you.

Characteristic 4: You are employed with at least two years on the job.
One thing that lenders demand is a history of stable employment. So, ideally, you have at least two years of employment at the same company or, at least, in the same field.

Characteristic 5: You plan to stay in the area.
If you are uncertain whether you will stay in a neighborhood or city, then it is a wise idea to put off home ownership for the time being. If you do buy a home, you could be forced to sell at a "fire sale" price and not have enough equity to pay commissions, etc. Of course, you can rent out your home, but, frankly, most sellers find this a tremendous hassle and a drain on their time and emotions.

Make it a great day,

Mike
(650)766-8500
mike@mikervin.com