Questions to Ask Yourself Before Deciding to Buy a Sugar Land House

Questions to Ask Yourself Before Deciding to Buy a Sugar Land House

The real estate market has been hot for months all around the country. Houses are flying off the Sugar Land market and buyers are showing off their houses all over social media. If you are currently renting a home, it can be easy to get caught up in the excitement of considering to buy a Sugar Land house.

But just because all your friends are doing it does not mean that you are ready to as well.

Before you get carried away in online searches for the perfect Sugar Land house, take the time to determine if now is really the right time for you to buy. It can be hard to admit if you are not, so think through the following questions to determine if you are ready to buy a Sugar Land house.

1. Can I afford to buy a Sugar Land house?

It is expensive to buy a house. Not only do you have to pay for the Sugar Land house itself, but you have to determine if you have enough money to cover the additional costs. There will be closing costs, a down payment, and you will want to have funds leftover to cover all of the expenses you will have as a new homeowner.

It is recommended by financial planners that you should spend no more than 28% of your monthly income on your mortgage payment. This also includes interest, insurance taxes, and HOA fees.

2. What is my debt like?

Lenders like to see that a buyer has less than 36% of their monthly income going towards their total debt. If you are carrying a lot of debt at that moment (ie. credit cards), you may want to pay down on your balances before applying for a mortgage.

3. How is your savings account?

If you spend all of your savings on your down payment, what happens if you have a problem once you are in your Sugar Land house? There are many unexpected expenses that can come up when you own a house, like a plumbing emergency or problems with your HVAC system.

There are also costs that you may have overlooked. For example, if you were previously renting an apartment, you may have forgotten that the new large back yard that you have at your house will need to be mowed. That means you either need to pay a lawn company or purchase the equipment to handle the lawn care on your own.

4. How long have you been working?

Lenders like to see that you have been working at the same job for a minimum of two years. This helps the lender feel confident that you will remain employed with an income to cover your mortgage expenses in the future.

5. What is your credit like?

Your mortgage lender will like to see that you have good credit built up. You can build up good credit by making regular payments on credit cards or auto loans, and even cell phones and utilities. If you make late payments, have a large amount of debt, or have filed bankruptcy in the recent past, there is a chance that you will be denied for your mortgage request.

6. What kind of Sugar Land house are you looking for?

Are you looking for a condo with low maintenance, a single-family home, or something like a duplex that will allow you to make a rental income each month? Carefully think about the advantages and disadvantages of each option.

A Sugar Land house is a large commitment and one that is not always easy to get out of. Before buying a Sugar Land house, make sure you are ready to stay in one place for at least several years.

Closing costs can be expensive, and you are not guaranteed that someone will want to purchase your house when you are ready to sell or for the amount you need. Moving is not easy when you are a homeowner, so make sure you are ready to commit and that you are in a good position to buy a Sugar Land house.