Buying a home is a BIG step. It can be a little daunting and that’s why so many people sit on the fence for so long, never taking the plunge, some for years and years. They may have crunched the numbers, and they may have been to numerous open houses, but they are just unable to commit. If you’re considering buying a house, you need to know when the time is right – for you. Really, the best time to buy a house is when it makes the most sense for your situation. So let’s see how you will know when it is the right time to buy a house in Babylon and the Surrounding Communities.
When Benefits Outweigh Costs and Responsibilities
If you buy a house in Babylon and the Surrounding Communities, you know that along with that purchase come expenses and responsibilities. Sometimes, those expenses and the maintenance and repair tasks seem almost endless. Besides the costs for maintaining, repairing, and upgrading your home, you’ll be facing regularly recurring expenses for things like homeowners insurance, property tax, flood insurance, etc. It can easily be seen as too big a financial burden.
However, owning your own home also has several benefits that make it superior to renting. When those benefits outweigh the responsibilities and expenses – for you – then it just may be time to buy a house in Babylon and the Surrounding Communities. Some of the major benefits of homeownership, according to one top real estate site, include:
- Control and freedom – When you own your home, you have control over what you can do with it. You have the freedom to plant fruit trees in the yard, to paint your rooms orange and purple, or to turn the basement into a “man cave” or a “she shed”.
- Predictable costs – Rent can increase unexpectedly at the whim of your landlord, but with a fixed-rate mortgage, you’ll know exactly what you have to pay each month and can budget accordingly.
- “Ability to make a neighborhood your home – Owning a house allows you to plant some roots and make connections. Because you control how long you’ll stay there, you can settle into a neighborhood and not worry about your landlord selling or charging more rent than you can afford.” If you have children that goes to school you do not have to worry about uprooting them from their friends if the landlord decides to sell the house. Additionally, rent in Babylon and the Surrounding Communities is quite high and rental units are very hard to find.
- Equity building – Making monthly mortgage payments may feel like paying rent, but it is, in fact, an investment. Part of every mortgage payment goes toward the principal, so you are building equity in your own home month by month. When you pay rent, you are helping your landlord build equity in their house, month by month.
When You Can Actually Afford It
Another way to know when it is the right time to buy a house in Babylon and the Surrounding Communities is when you can actually afford it. However, keep in mind that here’s a lot more involved in affordability than just the amount of the monthly mortgage payment.
Some of the many other costs you’ll have to factor in when determining if you can afford to buy (some of which I’ve already mentioned) include:
- Down payment (anywhere from 3.5% to 20% of the purchase price)… more if you have it.
- Closing costs (typically around 2% to 5% of the sale price)
- Homeowners insurance
- Property taxes
- HOA fees (in some cases)
- Repairs and maintenance (that can run you about 1% of the sale price per year for non-fixer-uppers)
You can use an online calculator to perform a side-by-side rent-vs.-buy cost comparison, or, even better, you can consult your local agent at (631) 357-4819 for assistance.
When You Have Some Savings
As I just mentioned, you will have some upfront costs when you buy a house in Babylon and the Surrounding Communities. Mortgage lenders will take these into account and assess your ability to pay them when determining how much (if any) they will lend you.
Before you start the process to buy a home in Babylon and the Surrounding Communities, it is advisable to pay down on existing loans, credit cards, etc. This will improve your credit standing and your ability to qualify for a mortgage. It is also highly advisable that you have some savings. In most cases you will have to put a down payment on the home as well as pay closing costs. The more you put down at the outset, the smaller your mortgage and the less you’ll have to fork over in interest each month. It also provides you with a little instant home equity. If you put too little down, a small downturn in the market will have a negative impact on your home equity so it is best to go in with enough of a down payment to provide you with a cushion. If you are planning on putting down less than 20%, you should be prepared to pay private mortgage insurance as well – another cost. Your savings plan should include additional funds put aside in the event something unforeseen comes up after you have purchased your home. When you think you have enough savings to tackle these items then it will be time for you to start the process to buy a home in Babylon and the Surrounding Communities.
When You Can Get a Mortgage with a Good Interest Rate
There are other things to consider before you buy a home in Babylon and the Surrounding Communities. Of major importance is your ability to qualify for a mortgage…(unless you are buying all cash, then this won’t affect you). If you will be needing financing, a mortgage with favorable terms and especially a good interest rate will be very beneficial to you. Most people will have to borrow some of the money to buy a house in Babylon and the Surrounding Communities and if you can get a mortgage with a good interest rate, the less it will cost you in the long run. So if you have a good credit score, it may be time to start the process to buy a home in Babylon and the Surrounding Communities.
If you have a good credit score, it may be time for you to buy a home in Babylon and the Surrounding Communities. Your credit score at the time of purchase can determine both if you qualify for a mortgage, how much much the lender will offer to loan you and how much you’ll pay for it. A score of, say, 790 will likely earn a low mortgage interest rate. You may still qualify for a mortgage with a 600 credit score, but your interest rate will likely be higher. However, if your credit score is not in the mid to high 700s do not be discouraged. There are many low down payment, low-interest programs available to people with less than stellar credit scores. There are also down payment assistance programs available from the Town of Babylon as well as at the County and State levels. For additional information or to discuss how to qualify, contact your local real estate agent. Call (631) 357-4819.
When You Find the Right Location/Neighborhood
The three most important factors in determining how desirable a property is – Location! Location! Location! When you buy a home in Babylon and the Surrounding Communities you will likely live in the neighborhood for a long time. When you’ve met the previous criteria, find an agent that will guide you as you start looking for a home in one of Babylon and the Surrounding Communities communities. Call (631) 357-4819. If you find a house in a neighborhood you love, plan to move quickly – it will be time to buy. In a recent survey, “five out of six respondents said finding the right neighborhood was equally if not more important than finding the right house. They said they’d give up home features – like pools, storage space, a garage, or a yard – in exchange for a great neighborhood.” After all, your happiness in the home will depend in large part on where that home is located.
When You Find an Agent You Can Trust
Is it the right time for you to buy a house in Babylon and the Surrounding Communities? If you’ve met all the aforementioned conditions AND if you’ve called (631) 357-4819 you will have found a great real estate agent to help you. The right agent – a local agent, with experience and real expertise will make all the difference. Buying a house is a huge endeavor. I offer a concierge service at no extra cost to you, loved by ALL my past clients…only the best is good enough for you! Contact me today at (631) 357-4819!
Serving all the communities in Babylon and the surrounding areas:
Amityville, Babylon, Bay Shore, Brentwood, Copiage, Deer Park, Lindenhurst, North Babylon, West Babylon, West Islip, Wheatley Heights, Wyandanch …and beyond!!