When in my Career should I move out and purchase my 1st home?

first time homeThis was, Mathew a 16 year old  friend of my daughter’s, questions to me this week.  Of course, I told him I was writing my weekly blog and wanted to know what his biggest question was about mortgages. It was interesting that his questions had nothing to do with mortgage rates, terms, or any of the mechanics of the mortgage process. It has to do with the end result, which is Home Ownership.  I am sure that I could write a book about this with a hundred things to consider when purchasing a home, but here are 3 things I think are important:

  1. Income Stability – I have read enough information to make me believe that most folks entering the job market now will work for over 15 companies in their lifetime.  That being said, purchasing a home before you have been working consistently at the same company job for at least a year, and having some comfort that your job will continue has to be a key factor in the purchase decision.
  2. Location Stability –  Do you believe that your current work location will remain the same or near the same for the next 3 years?  Financially, in most markets, it takes 3 years for you to pay down the home and have the home appreciate in value enough for you to sell the home without coming out of pocket with cash.
  3. Lifestyle Desires – Do you want to be free on weekends to do our hobbies? Do you want to be able to socialize with your neighbors?  Do you like tennis, golf, swimming pool? Do you like yard work?  Do you have a bunch of toys you need to store?  Do like home repair/maintenance(homes require constant maintenance).  Are tired of living with your parents? Are you tired of listening to your apartment neighbors play loud music and fight? Do I need more space for my growing family?  The list is endlist…

I think, more than ever, it is very important that you with a professional licensed Realtor to help you answer some of the questions of Home Ownership.  Sure, read everything on the internet, but a licensed, experienced Realtor can help you determine what you really want/need in a home and the best location.

Dan McKenzie
Managing Partner, Options Mortgage Services