Buying a House in California
You are ready to buy a house. Congratulations! You’re living the American Dream, as being a homeowner is on most people’s list of things they want to accomplish in their life. The reason it is considered such an accomplishment is because purchasing a home and then being a homeowner is not an easy task. Are you up to the challenge? Have you given enough thought to anything and everything involved with the process? We’re not here to scare you, but we do want to make sure you’re taking everything into consideration. You’ll want to keep in mind all of the following…
#1 Can you really afford this house, not just today but in a month and in a year? In order to know for sure, you’ll want to keep a few things in mind. This includes your job security and your debt-to-income ratio. The FHA sets its desirable debt to income ratio at 43%. This means that all of your housing-related expenses each month do not exceed 43% of your monthly income. Don’t forget about the down payment! Even if you have the monthly income coming in, you need to save up a lump sum of money for the down payment at closing.
#2 Another financial factor to consider is California homeowners insurance. If you can afford the mortgage, but not the insurance- you can’t afford the house! Our state is a wonderful place to live, but everything from floods to earthquakes to wildfires means California homeowners insurance is an absolute must-have. Don’t worry, though. If you choose the right insurance provider, your monthly insurance rate won’t push your dream home out of reach.
#3 There’s an emotional labor involved in owning a home. This is new for you! Are you ready? Owning your own house comes with additional responsibilities you didn’t have as a renter. When things break, it’s your responsibility to fix them, not the landlord’s. Can you keep up with the yard or do you have the finances to pay someone to do it? What are you going to do if the roof needs work? What if the air conditioner breaks?
#4 Take your time! Buying a home is a huge commitment. You don’t want to rush into it and find yourself tied down to a house you don’t love. Be sure to look at not just the house, but the neighborhood, schools, your commute time to work, noise levels, and anything else that may affect how happy you are living there.
For California homeowners insurance, your go-to resource should be Pronto Insurance! We can ensure you have the peace of mind you need in order to know that your new home is protected.