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Spring and Summer tend to be common seasons for buying and selling homes, but before you jump headfirst into this decision, there are a few factors to consider:

• Are you out of debt? Carrying debt puts a strain on your income. Adding a mortgage on top of that may place a further burden on your finances, increasing the amount of monthly interest you’re paying to lenders.
• Do you have emergency savings? It’s important to have savings that cover about 6 months of your living expenses, on top of what you plan to use for your down payment. Furthermore, owning a home can come with unexpected costs. Having extra savings can ensure you can cover unexpected issues without too much financial stress.
• Will your mortgage be under 25% of your pay? Stretching yourself too thin could prove to be a stressful experience. You will still want to have enough money for entertainment/discretionary spending alongside other obligations, so leaving a healthy buffer is usually best.
• Have you planned for less obvious costs? While there is a lot of emphasis on interest rates and rising home prices, chances are you will have many other expenses that you’ll need to budget for. These may include:
  • Closing costs (attorney, title, and lender fees, appraisal, transfer taxes, etc.)
  • Property taxes and insurance
  • Immediate repairs not known of in advance or worked into the negotiations
  • Style changes (painting, light fixtures, window treatments, etc.) and furniture needs

There are many great benefits to owning a home, but you want that experience to bring you peace of mind and happiness, rather than stress.

For Educational use only.