I have always been drawn to quizzes. If I am reading a magazine with a quiz, I will inevitably take it to find out something new about myself (or to confirm something I may already know!). These quizzes are fun to take because they don’t count. There are some quizzes in life that DO count, and the quiz on home ownership is one of them. Here’s our quiz to determine if you are ready to buy SMART.

  1. Do I have enough cash saved for a down payment? This is a difficult question to answer because it is dependent on your loan type and how much you are planning on spending. Some loans require as little as 3% down, while others can require as much as 20% down. You also have to factor in closing costs of 3-4% of the total purchase price. If you’ve been saving faithfully and the numbers add up, then proceed to question number 2.
  2. Am I prepared to deal with the “not so fun” aspects of home ownership? Renting offers the peace of mind that if something goes wrong, you are not responsible. Home ownership does not offer that same peace. Home maintenance is a huge part of home ownership including some big ticket items such as roofs, windows and landscaping. Additionally, there are extra bills attached to home ownership--tax bills, hazard insurance, etc. Are these responsibilities that you are ready to deal with? If so, proceed to question 3.
  3. What is my rate of longevity? Financially, a good goal for home ownership is to live in a property for at least 5-7 years. This helps the owner to build equity and to make up for the home buying/selling and moving costs. If you don’t plan on sticking around, you may not be ready to buy SMART. If longevity is in your radar, proceed to question 4.
  4. How’s my financial and job stability? Most financial planners will tell you that it is wise to keep 4-6 months of income (including mortgage payments) in reserve in case of job loss or another emergency. While no job is ever secure, there are telltale signs when a job is not secure. If you have a real chance of losing your job, the last thing you need to add to that stress is a mortgage payment. Having the geographic freedom to move if a new job offer arises is wise. If your financial and job stability is good, then proceed to question 5.
  5. What are my real reasons (financial and non-financial) for buying? Financial reasons don’t have to be the only motive to buy a house. While home owners build equity and there are some tax advantages to home ownership, some non-financial reasons need to be considered as well. For example, can anyone place a price tag on the stability of owning a home or being able to decorate a house as one pleases? For some things, the non-financial advantages far outweigh the financial considerations.

How did you do? Did you pass our quiz? Then you are ready to buy SMART!

​Give us a call today. We'd love to help you being the SMART buying process.

Seth & Alyce