How To Tell It's The Right Time To Find Your Forever Home

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Most people don't find their forever home until much later in their life. Due to finances and job stability, it typically isn't until people are in their 40s or 50s that they find the last home that they will ultimately settle into. If you feel like your finances are in check, but you're still not sure whether or not it's the right time to buy your dream home, then there may be a few ways that you can tell. 

Meet With a Loan Officer

The first way for you to truly determine if now is the best time for you to list your current home and start looking for your dream home is to talk with a loan officer. Your loan officer will be able to pull all of your financials like your bank statement, your tax documents, and your credit report. Once they have all the required documents, they will be able to tell you just how much of a home loan that you qualify for; this is called your pre-qualification letter. 

See What Your Dream Home Costs

Once you have your pre-qualification letter, you can start looking around at homes that you would deem to be your dream home. By seeing what's on the market and how much it's going for, you will be able to better assess if it's feasible. For instance, if you qualify for a purchase price of $450k, but your dream home is $650k, then you should either save more or see if you qualify for more later on based on an increased income.

If you do qualify for the exact amount that your dream home costs, then you're in luck and you can talk to your real estate agent about listing your home. 

Look at Your Potential Mortgage Payment and Your Financial Goals

Ultimately, you will want to look at your financial goals and determine whether taking on a larger mortgage payment will help you get to where you want to be. If you are in your 50s and want to retire in your 60s, taking on a substantial mortgage payment may not be the best way to go.

Look at all of your accounts, including your retirement accounts, and make sure that it makes financial sense for you to move forward with such a big purchase. After all, if you aren't able to enjoy your dream home because you're too stressed about making payments, then it may not be a dream at all. 

To learn more about buying your dream home, reach out to a loan officer and a real estate agent near you.