Sara's Top 3 Readiness Questions for Buying a Home

Is buying a home one of your 2025 resolutions? This can be your year. It would be my honor to help you achieve this goal. It all begins when you reach out to set an appointment with me. When we talk, these are some areas we’ll cover.

Do you have enough money saved up?

Aim for saving 20-25% of your home’s sale price to cover your down payment, closing costs, and moving expenses. While it is possible to secure a mortgage loan with less savings, you’ll experience greater benefits with a bigger down payment as well as more lending options.

As you talk with various lenders you will learn that each loan type is designed for different situations. For instance, veterans, servicemembers, or surviving spouses may be eligible for a VA loan. Sometimes, only one loan type fits your situation. If multiple options fit your situation, try out scenarios and ask lenders to provide several quotes so you can see which type offers the best deal overall.

Can you afford the monthly costs plus continue to save for your future while avoiding being house poor?

Being house poor is defined as spending a large portion of your monthly earnings on housing costs, making it difficult to meet other financial obligations. You can find yourself in this situation if your housing costs equal more than 28% of your gross monthly expenses. To avoid this, make a budget and run the numbers to see how much you can comfortably afford. Take into account how much you can add to an emergency savings fund to cover unanticipated expenses which may crop up. A good number to have in the emergency savings fund is enough to cover 3-6 months of expenses.

One of the tools real estate agents use to help their clients figure out their housing budget is a house affordability calculator. As your agent, I’ll ask you to provide some general information to plug into the calculator and we’ll crunch the numbers.

Can you afford any needed repairs or renovations after moving in?

When renting, the landlord typically covers repairs but once you become a homeowner these added expenses are something you’ll need to be prepared to handle. It’s rare that a new homeowner won’t want to make a few changes or customizations to the home they just purchased. From repainting walls to favorite color palettes or an upgrade to best match some immediate needs, after move-in there are bound to be unplanned expenses. A good rule to follow is to annually put aside 1-4% of your home’s current market value for repairs or renovations.

If your home is newer, one percent may easily cover these expenses. Should your home be a bit older, saving four percent may be necessary to cover aging repairs.   

Since 2004 Sara Lyn Nguyen continues to bring a wealth of knowledge and expertise about buying and selling real estate around the Houston area to those she serves. Sara is a multi-year award winning REALTOR® and relocation specialist where her clients trust her to have up-to-date information on the real estate market. She has been one of Gary Greene’s Multi-Million Dollar Top Producers, and citywide was the #2 Top Producing agent in 2020, #3 in 2021, and #2 in 2022. When it’s time to buy, sell, invest, or relocate speak with a trusted professional knowledgeable in the homes and neighborhoods of Fort Bend/Sugar Land and the surrounding region.