If you’re pretty sure you’re ready to buy a loft or condo in DTLA, here’s what you need to ask yourself first.
Ready to Buy a Home? Ask Yourself These Questions First
- Is there enough money in my bank account?
- How much debt do I have?
- How long do I plan to stay in my current job?
Is there enough money in my bank account?
You don’t necessarily need 20 percent down to buy a house, but you do usually need some money. The one exception is if you’re using a VA loan, which doesn’t require you to put any money down. However, you’ll also need money for closing costs, which add up to between 2 and 5 percent of the home’s purchase price, and monthly mortgage payments, repairs and utilities.
How much debt do I have?
If you have a lot of debt, now might not be the right time to buy a house. Owning a home can be expensive. And you shouldn’t spend more than 30 percent of your monthly salary on your house. Lenders look at those amounts when they’re deciding whether to let you borrow to buy, as well as deciding what interest rates you qualify for.
How long do I plan to stay in my current job?
If you have a lot of longevity, you’re good – but if you haven’t been in your current job long and it’s not looking like you’ll be there forever, you might want to hold off until you find something more permanent. It’s really important, because if you have to move for a new job soon, you’ll probably need to sell – and you could take a loss if you sell without building much equity.
Are You Buying a Loft or Condo in DTLA?
Call us at 213-254-7626 or get in touch with us online to start exploring your options when you want to buy a loft or condo in downtown Los Angeles.
While you’re here, check out our: