Decision To Buy

Whether this is your first purchase or time to trade to a different home that better meets your needs, the decision to buy deserves careful consideration.

Why do you want to buy a home?  Are you tired of paying rent?  Have you outgrown your current home- do you need more space or amenities?  Would you like a larger yard or are you tired of yard work?  Would you rather live in a different neighborhood?  Do you need to be closer to school, work, or family?  Having a good idea of your reasons will help you choose the home that best fits your needs.

Has your income grown?  Take advantage of your new good fortune- historically, home ownership has been a very good investment.  Also, home ownership can provide a means of “forced savings”: every month, part of a fully-amortized mortgage is applied toward paying down the principal part of your loan, thus building your equity over time in addition to any market appreciation.

Can you afford to buy a home?  Experts recommend spending between 33-40% of your income on housing.  If you’re renting, you might be shocked when you add up what you’ve spent on rent over the years.  Many people find the tax advantages of home ownership make it less expensive than renting!  Call Lu and she can help you work through a rent vs. buy scenario.

Down payment blues?  It is important to find a lender who can help you work through all the different scenarios for buying a home.  Many lenders have different approaches, so ask as many questions as you can and then compare lenders.  Please visit our “Resources” section for lenders Lu recommends.

Once you have made the decision to buy, you should spend some time getting organized so you’ll be better prepared as you go through the process.