While the dream of owning a house has been set aside during the recession, most Americans say that buying a house is still in their life plan. But before you finally decide to make an offer, you might want to ask yourself a handful of questions. While the answers to these questions might make you rethink your bid or scare you off, you can be sure that you are making the right decision.
Why do you want to buy a house?
Determining the reason why you want to buy a Denver house is important before you go out and start looking at options. What purpose shall it serve? Are you planning to live in it or rent it out? This is important as it will help you determine the house size and the type of loan structure you’ll need based on your plans.
How confident are you about your future income?
Before you start dreaming about white picket fences and granite countertops, make sure that you have a steady source of income. If you are thinking about quitting your job or there are murmurs of layoffs in your company, where will you get your monthly mortgage payment?
How confident are you that you will want to stay?
One of the most important factors that you have to consider when deciding between buying versus renting is how long you are planning to stay in that Colorado house. Mind you, it takes about 5 to 7 years just to break even the cost of buying, owning and selling a Colorado house. So, if you’re not confident that you can stay put for that long, you might want to re-consider your plans.
How is your credit score?
Your credit score is one of the most important things you should consider if you are planning to buy a Denver house. If you have a low credit score, you might have a tough time getting a loan. And if you do, there’s a great chance that you’ll be required to pay a higher interest rate and a higher down payment.
So, if you are planning to buy a Colorado house in the near future, now is the right time to pay off some of your debt and raise your credit score.