With the rising costs of rent in Metro DC, it is no longer a wise financial decision for local residents to choose renting over buying. Not to mention, mortgage rates are still historically low! In fact, they’ve hit record lows more than five times this year!
However, if this is your first time buying a home in the Washington DC area, you need to be ready to assume the responsibility of homeownership.
Here are four questions to ask yourself to determine if now is the right time for you to buy a DC area home:
Can you afford the costs?
If you have been saving for a downpayment and other costs over the past few years, you’ll be in great shape in 2021. You should have enough to cover 20% of the home’s purchase price to secure the best mortgage rate and avoid private mortgage insurance (PMI).
It is also wise to be prepared to pay closing costs which can typically range from 2 to 5% of the home’s purchase price.
Can you afford the payment?
You may have found the perfect home in Bethesda, Chevy Chase, DC, or the surrounding areas, but it’s important to know if you can afford to take on the mortgage payment. Take the steps to get pre-approved with a lender to first see how much the bank will lend you. After, you can begin searching for homes in your appropriate price range.
Can you afford the upkeep?
When renting, you likely do not have the expense of maintaining the property. When you are a homeowner, repairs are all left up to you! Do you have enough funds to cover a broken faucet or appliance? Or are you willing to learn how to fix them yourself? These questions are crucial in your decision to buy a home.
Do you have good credit?
If you have great credit, buying a home in the DC Metro could be smooth sailing. If not, it’s wise to begin grooming your credit report months before you meet with a lender. Any errors can put a hitch in your home buying plan.
You can count on The Estridge Group as your local team of real estate experts and we are here to help Metro DC residents (and those relocating!) achieve their goal of becoming a homeowner.
We look forward to working with you in the new year!