Mortgage approval involves presenting your income, credit history, employment information, and other details needed to obtain a mortgage. A number of factors need to be considered when buying a home, such as the housing market, interest rates, and plans you may have for the future. If you buy a home, it can be difficult to be flexible when it comes to your family or profession. You may also be unsure if a neighborhood is the right one to settle in for the long term.
If so, you should consider renting first in the area and saving any large purchases for later. To save money and stay flexible, many young professionals choose renting over buying a home, as there are several healthy rental markets across the country. This seems to be a more popular trend, as the U.S. Census Bureau reports that the homeownership rate was around 65% last year.
They say that the three most important things to consider when buying a home are location, location, and location. You can change almost everything else, but you can't change the location of your home. Therefore, when you go home hunting, consider the proximity to your work, how the house is located on the lot, ease of access, noise from neighbors, and traffic. Also think about access to parks, shops, schools, and public transportation.
When thinking about buying a home, consider whether you want to put down roots or maintain flexibility with your living situation. But we lowered our expectations because we weren't convinced that our income and expenses would remain at those levels. Unless you're buying new construction, there's usually a fairly large list of potential maintenance items. You want to be able to comfortably pay for not just the house, but all the expenses involved in buying a home, from the down payment to closing costs and maintaining and repairing the property.
Don't forget to set aside money for ongoing maintenance and unexpected repairs that are sure to come up as well.