Approximately 40,500 Nashville homes were sold in 2017. Climbing nearly four percent higher than 2016 totals, last year’s home sales allowed our region to experience the best year on record. Considering 2018, the median price for single-family homes continues to rise and the millennial generation is determined as ever to buy their first property. Thus, the Nashville housing market is not slowing down. Before making the big leap to purchase a home, make sure to ask yourself the following questions:
Have you done your due-diligence?
Doing your research and knowing what is available is key. Do you know in what neighborhoods you are interested in purchasing? Have you studied average house prices in your market? Knowing what is available and what is realistic for your situation is crucial when determining if you are ready to take the next step towards home ownership.
Are you prepared to make a down payment?
When applying for a mortgage, buyers are required to pay a certain percentage of the total value of the home up front. This total can range dramatically depending on the type of mortgage in which you are applying. In addition to the down payment, new buyers should consider the totals of closing costs as well. An experienced agent can help you understand these types of expenses before getting too far into the home-buying process.
Have you checked your credit score?
Before receiving a loan, lenders will always check your credit history – don’t let their findings come as a surprise to you. There are numerous sources for attaining your credit report, and you should go to each of them and pull your credit history. Make sure to double check for accuracy on what you owe, what your payment history is and the number of accounts you have open.
What can you realistically afford?
Before you sign the papers on your new home, consider how much you make annually. Then, calculate total your monthly bills to determine what you can pay monthly. This should include everything from house payment and living expenses to credit card payment and extracurricular activities. Make sure to leave room for spontaneous expenses and emergency situations.
Have you considered incidental costs?
Once you own a home, other costs naturally incur. For example, you will need to purchase homeowner’s insurance, keep up with maintenance and be prepared for any unexpected home emergencies.
Have you made any major purchases recently?
If you are still paying off any new, big investments, you probably should wait to buy a home. With multiple major ticket items not paid off, your abilities to receive a quality loan will be hindered. Owing on numerous major ticket items can also be a stressful experience while potentially putting you in a tough financial situation.
After asking yourselves these questions and determining the honest answer, call one of our agents today for further clarification or to help you find your new dream home!
Lawrence M. Lipman is the owner and president of RE/MAX Homes and Estates, Lipman Group. Real estate is Lawrence’s career, but also his passion, and he takes pride in guiding buyers and sellers through exciting home transitions at any budget. Lawrence welcomes questions and can be reached by calling 615-364-3333.