What Should You Consider Before Buying New Homes in Hesperia?

More and more people are looking to get out of the city and invest in property in the Hesperia area.  New homes in Hesperia, CA, can be a great investment, but there are several important considerations that should go into your purchasing decision. We’ve helped numerous people in the Hesperia area realize their homeownership dreams, and we want you to make the best possible decision.

Four Critical Factors When Looking at New Homes in Hesperia, CA

1 – Know your own debt-to-income ratio

One of the most critical factors in determining whether someone gets a mortgage loan is their debt-to-income ratio. In other words, how much debt they have versus their income. According to the Federal Housing Authority, a desirable debt-to-income ratio is no higher than 43%. No more than 43% of your income should go to housing expenses.

So, know your own financial limits, and don’t exceed them, or you could end up with a mortgage you can’t afford to pay off.

2 – How long will you be staying?

Generally speaking, if you sell your home before you have been living there for two years you will pay capital gains on all of your profits.  If you intend to only be in the Hesperia area for a relatively short time, buying a house may not be cost-effective unless you have another location to roll all of your equity into another home to avoid paying the capital gains.

3 – Realistic job security

You can only pay off your mortgage at predicted rates if your job situation remains stable, or sees your income grow. Before going through with your purchase, we highly recommend you think hard about the stability of your employer, and of the overall health of your industry.

Obviously, you cannot predict everything that might happen in the course of a 30-year mortgage but do some due diligence. You don’t want to get stuck without a job and with mortgage payments piling up that you can no longer afford.

4 – How will you pay the down payment?

First, forget the “common wisdom” that a down payment must be at least 20% of the home’s value. That’s no longer true, and you can often buy with a smaller down payment, especially with a FHA Loan.  However, some up-front payment will be necessary. Where is it coming from? You’ll need to plan ahead and save up.  That said, some government agencies at both the Federal and State level offer discounts or assistance to first-time homebuyers, so explore your options before committing.

Your New Home in Hesperia, CA, Awaits You

If you’re ready for a new home in Hesperia, CA, Cornerstone Construction offers top-quality homes at competitive prices.  Contact us to discuss your needs!