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In 2021, first-time homebuyers made up 34% of all homebuyers. Even during these difficult times that we are all living through, some people are still capable of buying and owning their own homes!
Buying property is a huge deal, and when you are ready to have your own house, you know it comes with a lot of responsibility. You not only have to find and pay for the house, but you also have to keep in mind that you may need to do repairs, maintenance, landscaping, and much more.
Are you interested in figuring out if now is the time for you to get your own home? If you’re feeling like you’re ready to buy, you still have to take into account many factors that show just how secure you would be with this huge purchase. Keep reading to learn more about how to know if you’re ready to purchase a house.
All jobs and careers out there have a little bit of uncertainty tied to them, but if you’ve been in a position for a long time, or you own your own business, you likely are considered to have a “steady career” in the field.
This means that you can rely on your income coming in as usual for the foreseeable future, so you won’t have to worry about getting your new home and then not being able to make payments.
If you’re not quite in a situation yet in which you can know for sure that you’ll have your income for a while, it may be better to wait before you buy a house.
Good Credit Score
If you’re diligent about watching your credit score, then you know when your credit score is finally at the point that you’ll be eligible for a good mortgage.
Getting a lower interest rate when you take out a loan to get a house is important to avoid paying more than what is necessary, and lenders will take a hard look at your credit score to see where you stand. Good credit makes it more likely that being a homeowner is going to be an affordable prospect for you.
Enough for a Down Payment
Did you know that most people aren’t automatically putting down 20% as their down payments anymore? While that used to be the norm, the average today among all buyers is about 12%.
While putting down a larger percentage is a better choice if you want to save money in the long run, it really depends on your financial situation.
Even so, you can put down any percentage that you want and can afford. However, you need to know beforehand that you actually have enough to do this without becoming house poor to make the most of this experience.
No Outstanding Debt
A clear sign that you’re ready to buy a home is that you don’t have any other debts that are already weighing you down.
You’ve paid off your credit card debts, car payments, or even most of your student loans to the point that these debts don’t require much more payment. If you’ve paid them off altogether, more power to you!
Remember that you’ll need this extra cash flow to help pay all of the expenses that are related to owning a home, including repairs, furnishings, property taxes, and insurance.
Savings and Emergency Funds
Before you apply for a mortgage or even start shopping for a new house, you need some savings. Something unexpected may happen with the house itself or just life, so you have to be able to plan ahead and make sure that you’re ready for anything.
In general, it is a good idea to consider at least a year of monthly bills as a goal for savings before you buy a home.
You may have recently gotten a raise or an extra-large bonus that you can put toward savings and emergency funds today. Even so, you should wait for at least a little while to make sure that you can build these numbers up.
This way, you can have something to fall back on just in case something does happen to your steady income (because there really is always some uncertainty there).
Prepared for the Long Haul
When you take the time to look for a house, purchase a home, and move all of your stuff in, you have to know that you’re going to be there for at least a few years. It’s important to think about how long you want to stay in the actual house, but also how long you want to stay in the area or even the state.
Before buying a house, you also need to ensure it’s in good shape. You don’t want to stay in a place that is falling apart and ends up being much more difficult to care for than you had anticipated. This is why you should check out Always Faithful Home Inspection here, and get the help you need with a home inspection before you buy.
These are all factors that need to be considered before you make a purchase. You may also want to consider your future career goals, whether you want to eventually have a family or not, and if you need an outdoor space for future pets.
Is it Time to Purchase a House?
Owning a home is a huge responsibility no matter where you live or what size property you get. As such, you have to be prepared for such a large undertaking.
Make sure that your finances are in order, you’re planning for the future, and you have a solid grasp on just how much homeownership is really going to cost.
Now that you know whether or not you’re ready to purchase a house, it’s time to check out more of our blog for tips on furnishings, maintenance and repair, and more.