The national average for how long people live in their homes is approximately seven to nine years. Reasons for leaving a home can vary widely, but if you purchase a home and decide to move after only a short time, you may end up paying money in order to sell it. Generally, the shorter you’re in your home, the less time your home has to appreciate in value—perhaps not enough to recover what it cost to buy and sell the home.
The amount of time it takes to recover those costs can depend on various economic factors. In most parts of the country, homes appreciate at an average of five percent per year. If this is the case in the area you are looking to buy a home in, you should stay in your home at least three to four years to recover buying and selling costs. If the area where you buy your home experiences an economic upturn, it may take less time to recover those costs. Conversely, if the local economy is not doing well, it may take longer.
The amount of time you plan on living in your home will have an impact on what home loan you choose. If you plan on staying there for more than ten years, a long-term fixed-rate mortgage might be a sensible choice. But if you know you’re going to move within three to five years, an adjustable rate mortgage (ARM), with its lower payment options, might be a better choice.
There are basically about 10 steps to buying a home.
Pay particular attention to the order of these steps because taking these one by one, and in order, will help you be prepared for what is to come. Much of the stress caused by the home buying process comes from performing these steps in the wrong ord
- Get Pre-Qualified or a Pre-Approval for a Mortgage
- Use the Homebuyers Checklist to set your Priorities
- Get a Real Estate Agent
- Talk to your Mortgage Professional again Before making an offer
- Make the Offer on the Home / The Offer is Accepted
- The Mortgage Process
- Appraisal, Inspections and Possible Renegotiations
- Setting Up The Closing
- The Closing
Getting pre-qualified doesn’t cost anything more than a little time and the investigation of a credit report. There is no obligation. Give us a call today and get the house you’ve been dreaming about.