When it comes to decisions we make in life, buying a home is near the top of the list.  Not only do you want to ensure that you feel that the North of Boston home you are buying is a place that you will feel comfortable, that works with your commute to work or school and many other reasons of convenience and lifestyle, but you also want to be certain it’s a wise investment.

As we look forward to this year that’s wide open in front of us; we all want to know that the decisions we make are going to be good ones.  If you are considering buying a North of Boston home within 2011; take a step back and a moment to evaluate how prepared you are to jump into the North of Boston Real Estate market.  Below are the top 10 ways to determine if you’re ready to begin the home buying process.

1. You’ve made the decision to buy on your own terms- Evaluating why you want to buy a home is crucial.  Are you the one who wants to buy a home and take on that responsibility or do you have outside pressures that make you feel that you need to buy?  Only you know how your finances, personal goals and lifestyle will fit into the home buying process and if you’re not sold on buying; don’t.  If you know that you do want to buy a North of Boston home in 2011; make sure you determine what you’re comfortable with and stick to it.

2. You’ve been watching home prices in your area- You will need to know what home prices are like in the North of Boston area before embarking on your house hunt.  Of course your North of Boston Real Estate agent will give great insight into the current home price trends.  Having an idea of where the market has been and where it’s going will help you determine if 2011 is your year to buy.

3. Home prices are stabilizing in your area- Playing off of the previous point, you want to determine what the North of Boston Real Estate market looks like.  It seems that the market will continue to stabilize itself, which is great news!  Ask yourself how long you plan to stay in your new home.  If you only plan on living in the home for a few years; the stabilization of the real estate market will play a larger role. However, if you’re planning on living in your North of Boston home long term; you can rest assured that the market will only continue to climb upward and that if you ever plan on selling, the market will be healthy for a home sale.

4. You’re putting money aside- This seems like a very basic point, but a very essential one.  The days of “no money down mortgages” are gone and most lenders require at 5% down.  You will also make sure that you have additional money for things like closing costs, as well as money in the bank when all is said and done.  Lenders are becoming more strict and want to know you can back up the purchase of a home.

5. You have a FICO credit score north of 600- Credit scores are moving to the forefront of being approved for a home loan.  Most lenders are expecting a credit score of 600+ even for FHA loans.  A good credit score will not only help you qualify for a home loan, but can lower your interest rate, which can save you thousands of dollars in the long run.

6. You’ve established a home-buying budget- If you’ve taken the time to create a home-buying budget chances are you’re serious about buying a home and want to go about it in the best way possible. It’s imperative to establish your budget prior to talking with lenders.  Just because you are approved for a certain amount on the loan, does not mean that’s what you can actually afford.  Lenders don’t take your extended finances into consideration, but will look at your income.  Be sure to stick within your budget to avoid foreclosure and heartache in the future.

7. You’ve researched your mortgage options- It’s important to research which type of mortgage is best for your financial situation.  Getting a fixed or adjustable-rate mortgage will depend a lot of your long term goals.  Your North of Boston Real Estate agent will also be able to help you determine which option is better for you and can walk you through the pros and cons of both.

8. You’ve been pre-approved for a mortgage- Getting pre-approved before you meet with a lender can save you time and will be a good indicator of any financial issues that need to be addressed.  Things such as credit or income problems are items you want to take care of before trying to get approved for a home loan. Sellers will also take you more seriously if you have your financials in order. 

9. Your debt doesn’t eat up too much of your income- Another way to test if you’re ready to buy a home is if you’ve paid down your debts.  Lenders will look at your DTI, your debt to income ratio, and if your combined debts (mortgage and other debts) are more than 36% of your yearly income; chances are you will have a hard time qualifying.  Each lender varies on this amount, but making the serious decision to buy a home can’t be taken lightly as it may have been in years past.  The housing market is really attempting to wipe its slate clean to help lay the ground work for a healthy future.

10. You’re considering a variety of homes- Keeping your options open is key in buying in today’s market.  Whether a short sale, foreclosure, or regular home; there are many options that can prove to be great deals.  Your North of Boston Real Estate agent can help you determine which type of home is right for you.

I hope these tips are helpful in helping you determine if you’re ready to begin the home buying process!  Buying a North of Boston home can be a great investment and experience.  Please contact me today with any questions you may have about the North of Boston Real Estate market!

Searching for a new place in Winchester to call home? The Sven Andersen Team makes it easy for you to search for your new Winchester home. This FREE, NO-OBLIGATION service can help you find the home of your dreams! Simply visit http://www.northofbostonlistings.com/ and fill out the form to start your auto-email home search today! It's just that easy! The Sven Andersen Team is always willing to help and will always respect your privacy; we leave it up to you to contact US when you're ready to buy or sell in the Winchester area.

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If you, friends, relatives, or colleagues are considering buying or selling a home, condo, or land, please consider contacting Sven for assistance in your search. Sven coverage area includes: Winchester, Belmont, Medford, Woburn, Lexington, Arlington, Melrose, Stoneham, and Reading.  We also offer a complimentary referral service, called "Anywhere Agents," to assist folks who are looking to buy or sell outside our coverage area, including international locations. We will interview prospective agents in the area(s) you or a family member are considering to assure you get the most knowledgeable Real Estate Professional to assist in your home buying/selling needs.