Are You Ready to Buy a House?

Are You Ready to Buy a House

As you look forward to buying your first home, how can you know that you are ready? You're living according to your budget, keeping an eye on your credit score, and saying for a down payment.

How will you know when you are ready to buy a house? Keep reading for some things to keep in mind.

Anticipate the Cost of Homeownership

As you make sure you are financially prepared for homeownership, make sure you're taking the full cost into account.

Owning a home requires more financially than just making your monthly mortgage payment. There are many other costs of homeownership that are different from rental costs. There are one time costs to be prepared for when you move in, including:

  • Window coverings, which are sometimes included in the sale of the home but may need to be replaced
  • Any appliances that weren't included in the sale, which commonly include washer, dryer, and refrigerator
  • Appliances that need to be repaired or replaced
  • Furniture, especially if you are moving into a house that is larger than your rental home

And then there are costs that you should be prepared for throughout the course of owning the home, including:

  • Repairs, ranging from something small like a new faucet to major repairs like replacing a roof
  • Seasonal maintenance, like gutter cleaning, sprinkler blowouts, and fertilizing your lawn
  • Landscaping costs, whether you invest in the equipment to do it yourself or opt to hire a professional service or neighbor kid
  • Appliances, which will need to be repaired or replaced over time
  • Property taxes, a cost that varies depending on your location but should be taken into account

You are ready to buy a house when you can afford the monthly payment and be able to financially manage any of these additional costs, which are currently handled by your landlord.

Credit Score

In order to be ready to buy a house, you need your credit score to be at its best.

Credit scores are categorized in five tiers. In general, credit scores under 579 are poor, 580-669 are fair, 670-739 are good, 740-799 are very good, and 800-850 are excellent.

A lender will consider you as an applicant based on which category your credit score falls under, so it makes sense to find out what your score is and how close you are to bumping it up to the next tier. For example, if you have a score of 720, it’s worth the time and effort required to bump that score up over 740 in order to be considered someone with “excellent” credit.

A credit score over 700 is likely to secure you a good interest rate, but anything in the “very good” or “excellent” category is a good enough credit score for the best mortgage terms your lender has to offer.

If your credit score is fair or poor, you may not be ready to buy a house yet. Work on bringing the score up to be able to qualify for the best rates.

Look at Mortgage Options to Suit Your Budget and Timeline

If you are a first time home buyer with good credit, you have many mortgage options available to you. Saving up for a 20% down payment isn't necessary, with mortgage products that require as little as 3% down available for first time home buyers.

Take the time to look at your options, and even talk to a few lenders to anticipate the budget and timeline you should have in mind. Knowing when you are ready to buy a house depends significantly on the down payment you need to save.

For more information about becoming a first-time homebuyer, contact us today! We are ready to help.

Check out the Newest Listings in Horseshoe Bay

101 Properties
Page 1 of 9
259.12
Acres
8
Days on Site
160116
MLS
259.12 Acres with Breathtaking Hill Country Views!! This is a rare find in a great location. The ranch is located a short drive to both Johnson City and Fredericksburg. This is your blank canvass...
$4,250,000
Neighborhood: Clearwater Harbor
8
Beds
8F21/2
Baths
6,690
Sq.Ft.
2022
Year Built
5
Days on Site
160159
MLS
This is a great opportunity to purchase 2 properties at the same time to create one of the largest short-term rental (STR) incomes on the Colorado Arm of Lake LBJ. These 2 4-bedroom houses were built...
4
Beds
3
Baths
5,839
Sq.Ft.
2020
Year Built
8
Days on Site
160117
MLS
No description available...
$2,700,000
Neighborhood: Clearwater Harbor
5
Beds
4F11/2
Baths
3,650
Sq.Ft.
2021
Year Built
8
Days on Site
160095
MLS
Hot Spot-on Lake LBJ. 1st place winner of the 2020 Pinnacle Design Award! A wonderful lake front 3650 sq ft 3 level home with all essentials to ensure you have the 'fun house' with everything to do...
$2,500,000
Neighborhood: Applehead Islnd
0.28
Acres
3
Days on Site
160180
MLS
4 Nice build lots at fantastic price of 2.5m Each are separately listed as well. See mls numbers 159901, 159771, 159773, 158710. Each/all come with a waiver of initiation fee to Horseshoe Bay...
$2,400,000
Neighborhood: Hays
5
Beds
3
Baths
4,624
Sq.Ft.
1975
Year Built
2
Days on Site
160188
MLS
143 ft of beautiful open waterfront on Lake Marble Falls. Serene setting on a gorgeous landscaped double lot featuring a private beach area, boathouse with electric lift and two jet ski lifts. The...
3
Beds
3
Baths
3,210
Sq.Ft.
2020
Year Built
2
Days on Site
160194
MLS
Don't miss seeing this 59.55 acre property with amazing views from the front and back porch. This Modern Farmhouse built in 2020, is a 3,210 sq ft custom built home, 3 bedrooms, 3 full baths with an...
3
Beds
3
Baths
3,210
Sq.Ft.
2020
Year Built
2
Days on Site
160195
MLS
Don't miss seeing this 59.55 acre property with amazing views from the front and back porch. This Modern Farmhouse, built in 2020, is a 3,210 sq ft custom built home, that has 3 bedrooms, 3 full...
$2,100,000
Neighborhood: Siena Creek
4
Beds
6
Baths
4,750
Sq.Ft.
2006
Year Built
6
Days on Site
160133
MLS
137 Mitchell Creek Drive is a 4,750 sqft Mediterranean style home that offers 6 Bedrooms/4 Baths, and more in the resort town of Horseshoe Bay, Texas. This House comes FULLY Furnished! Located on...
$1,999,999
Neighborhood: Clearwater Harbor
4
Beds
4F21/2
Baths
3,345
Sq.Ft.
2022
Year Built
5
Days on Site
160158
MLS
Great income producing home being built on the Colorado Arm of Lake LBJ. This home has 2 master bedrooms, extra owner storage, built-in bunk beds, flex room for office, exercise or game room space,...
$1,995,000
Neighborhood: Escondido
1.2
Acres
8
Days on Site
159922
MLS
The best remaining waterfront lot in Escondido Proper w/over 160' of waterfront facing EAST. The lot is nestled in between two $8 Mil+ estates. A membership to Escondido Golf & Lake Club conveys for...
$1,629,000
Neighborhood: Sunrise Beach Unit 1
3
Beds
2
Baths
2,400
Sq.Ft.
1966
Year Built
5
Days on Site
160161
MLS
No description available...

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