Right now, buyers are going to find that this is the time to buy a home that is on the market. They are going to find that prices are low as there are tons of homes on the market that are competing with one another to get sold, thus it means a good time for all buyers right now. Those that are thinking about buying a home need to realize that this is a personal decision to make, and they need to make sure that they take the time to make sure that this is the decision that is going to be the best for them. In order to determine if you are ready to buy a home in Hawaii, the person needs to make sure that they are asking themselves some key questions that are going to signal whether they are ready or not.
1. Is there enough money for a down payment? And while asking this, what exactly constitutes 'enough money' for a down payment?
Most people are going to find that the down payment of the Hawaii home mortgage is around ten to twenty percent, depending on the terms of the loan that the person gets. Some loans are much lower and only require around three percent down payment. Thus, this is something that the person is going to want to find out before they calculate whether they have enough money to pay for the down payment of not. There are programs out there that are meant to help the person with getting the down payment that they need, however, they should keep in mind that these are far and few between and have really went off of the globe with the recent change in the economy. The person should also consider that the closing costs can sometimes be as much as the down payment that they are going to have to pay as well. In order to get a good idea of just how much money that you are going to need, you should see the loan officer or a Hawaii real estate agent and they should be able to figure out just how much you would need in order to cover all the costs that you are going to incur with buying a home. So ask yourself, do you have enough in your banking or savings account to cover the down payment of a home? If you do not, then is there a way that you can get the money? Remember that you if you put down as much as you can afford then you are going to look better to lender and you may find that you have a better loan term in the long run, plus, you can decrease the monthly payment that you will be paying.
2. There are factors about owning a home that are not so great, are you ready to handle this?
When you own a home, you have to fix things when it goes wrong or call a professional, that you have to pay in order to have this done for you. Maintenance is just something that goes right along with home ownership. Thus, if you do not think that this is something that you can learn or do, then you may want to consider staying with renting, or even finding a condo that may have some type of maintenance staff that is included. There are other factors that the person should consider as well when they become a home owner, for example, they are going to have to pay property taxes, insurance and so forth. Are you ready for these extra expenses?
3. What Amount of Time do You Want to Stay in the Home in Hawaii?
There is not point in buying a home and then moving out of it within a year's time, this is silly and a waste of your money. Unless, you plan on turning the home into a rental home which is something that is somewhat of a risk. The rule of thumb is that you should not buy a home if you are planning on living in it less than five years. From this stand point, less than five years is wasting money. And for those that may be buying a home in an area that is known for its slow market then they are going to want to make sure that they are staying in the home longer than seven years before moving in order to not lose their money.
4. Do I Have a Job and Finances that are Stable?
The idea behind asking yourself this question is to find out if you can afford to move into a home right now. For example, a hypothetical scenario is that you have moved to a new company and are going to have to work your way back up, thus you do not have the job security that you once had. This is a sign that you may not be ready for a mortgage. You do not want to find yourself with a home mortgage that you cannot pay, which is the case with many people in the world, who end up losing their home and ruining their credit in the long run. With that being said, there is not really a way to tell that you have one hundred percent job security in the day and time that we live in. So, with that being said, look at your finances. If you were to lose your job do you have enough saved up that is going to allow you to make payments for a few months until you get back on your feet? In fact, most people recommend that you have at least six months saved up that is going to cover your living expenses.
5. Why do you Want to Buy?
The reason for why you are buying a home in Hawaii is something that you really need to take into consideration. You should never let someone else talk you into buying a home because it is not really what you are wanting. Some good reasons to buy a home is to:
- You want to put your money into equity instead of wasting this on rent that goes to a landlord every month. With this option at least you are getting something for your money instead of simply borrowing your home.
- You want to have a place that is your own, that way you can do what you want, if you want to paint the walls a cool shade of blue or pull up the carpet and replace it with hardwood, this is your home so you can do what you want to do.
- You think that the tax advantages of owning a home is something that is intriguing.
- You want to put some stability in your life with a home that you can have a family in.
Asking yourself these questions is going to make it much easier to determine if you are really ready for a Hawaii home of your own or not. It is important that you are honest with the answers that you give so that you can truly find out if you are ready or not. However, if you find that your answers say you aren't ready, give it a few years and reassess the situation since things may have changed since then and you are ready.
