Buying a home has long been a major part of the American dream. But, in reality, it’s just not for everyone despite the many good reasons to buy a home. In fact, a large portion of homeowners wind up regretting their purchase. Is it right for you? To find out, take a look at these 5 questions to ask yourself before buying a home in Santa Cruz.
1. Is my credit score good enough?
Your credit score should be a major factor in your home buying decision. A good credit score makes a huge difference when it comes to buying a home in Santa Cruz.
With a lower credit score, you may not be able to secure a mortgage loan at all. And then, even if you can, you’ll likely have to pay a higher interest rate. But with a good credit score, you’ll get better interest rates and better mortgage terms.
Industry experts, then, advise improving your credit score before you even begin looking for a home. A good way to begin is by paying off or down your credit card debt. At the very least, get a copy of your credit report to see exactly where you stand credit-wise before making the decision to buy a home.
2. Do I really know what I want in a home?
An important aspect of buying a home is knowing exactly what you want and need in a home. It can save a lot of time during the home search and can help you avoid buyer’s remorse after the purchase.
Here, then, are some sub-questions you need to ask yourself:
- Do I understand clearly my must-haves and like-to-haves in a home?
- Are there any absolute deal-breakers I won’t compromise on?
- AmI willing to make some renovations in order to get a better deal?
- How long do I plan to live in the home?
- Will my family grow while I am living the home?
Keep in mind, too, that your Santa Cruz can provide valuable assistance in helping you determine your needs and wants and can then help you find a home that ticks all your boxes. You can discover more by calling 831-588-2334.
3. How much home can I actually afford?
Besides knowing what you need and want, you also have to know what you can actually afford when buying a home in Santa Cruz. And the amount you can borrow isn’t necessarily what you can comfortably afford.
When thinking about affordability, you also have to factor all the other costs of home buying, both one-off costs and the many recurring expenses, for example . . .
- Closing costs
- Property taxes
- Homeowners insurance
- HOA fees
- The cost of commuting
- Repairs and maintenance
You can typically expect your “operating costs” as a homeowner to be about 40% of the monthly mortgage payment.
4. Will I be able to cover closing costs?
As we mentioned, there are those inevitable closing costs when the process of buying a home is finalized. Many buyers fail to factor in closing costs and wind up going over their buying budget.
Closing costs cover things like attorney fees, appraisal costs, taxes, title insurance, and more and typically run about 3% to 5% of a home’s purchase price, which can easily be a sizable chunk of change. So you need to be sure to ask yourself whether you’ve set aside enough money to cover the closing costs.
5. Do I know where and how to find the right agent?
When buying a home in Santa Cruz most people are better off using the services of a good local agent. Your Santa Cruz can help you find the home you want and help you navigate the whole complex process and so avoid the frustration and anxiety that often accompany buying a home.
Finding the right agent for your needs usually involves creating a shortlist after getting referrals and checking reviews and then interviewing the potential agents who made your shortlist. This is usually a lengthy and time-consuming process. But you have to make sure you and your agent are a good fit.
There is an easier and better way, though. And that is to contact a proven, experienced Santa Cruz agent right off the bat. So if buying a home in Santa Cruz is on the horizon for you, contact us today at 831-588-2334.
