STEP 5: Knowing When to Take Action
Your Goals Are on Auto-Pilot—When Is It Time to Buy?
Your savings are growing, and you're inching closer to your dream home every month. But how do you know when it's time to pull the trigger? Here are three key factors to consider:
1️⃣ Do You Have Enough Saved?
Your down payment is just one part of the equation. Make sure you've also set aside funds for:
✔ Closing costs (legal fees, taxes, title insurance – usually 1.5% to 4% of the home price).
✔ Inspection & appraisal fees (a few hundred dollars but worth every penny).
✔ Emergency repairs & maintenance (ideally 3-6 months' worth of expenses).
You're in a good position if you can cover these without straining your finances!
2️⃣ Can You Secure Favorable Financing?
Now is the time to speak with a mortgage broker to determine:
✔ How much you're pre-approved for?
✔ What interest rates are like (even small changes can impact your payments).
✔ Whether there are first-time homebuyer incentives you can take advantage of.
A mortgage broker will help you find the best loan options to suit your situation.
In addition to her work in personal finance, Jordan is a real estate investor who owns four rental units (eight doors). She helps others understand the power of real estate as a wealth-building tool, teaching them how to leverage property investment to create long-term financial stability.
3️⃣ Is It a Good Time to Buy?
Market conditions matter! Work with your real estate agent to assess:
✔ Are home prices rising, stabilizing, or dropping?
✔ What's the inventory like—are there enough good options available?
✔ Is it a buyer's or seller's market?
An experienced agent will help you navigate the market and ensure you're making a smart investment.
Why Professional Guidance Matters
Getting a mortgage broker and real estate agent involved early will make the process smoother and help you maximize your hard-earned savings. If everything aligns—your savings, financing, and the market—it might be the perfect time to buy!
Next week, we’re covering alternative financing options to help you expand your portfolio and invest smarter. Stay tuned!