5 Signs You're Ready to Buy Your First Home
Are you starting to think about becoming a first-time home owner? It’s exciting, isn’t it?! Buying a house probably ranks pretty high on your list of dreams to achieve. But it’s a big decision that requires some serious thought. And the timing has to be right.
The great news: there are some telltale signals that can help you figure out if you’re really ready. So before you make this life-changing leap, check yourself for these five signs:
You feel like you’re in a good place. And you want to stay there. Do you like where you live enough to stay where you are? Buying a house doesn’t mean you can never move again. But because of bank fees, down payments and moving expenses, staying put for at least four to five years makes the most financial sense.
You feel good about your income. With your first home comes your first mortgage. Being fully confident in your ability to make your house payment every 30 days is a big deal. If you feel like your job and your income are on solid ground, and you know you’ll have no problem paying your other bills, it’s another good sign you’re ready to own.
Your credit is in great shape. Keeping your credit in tip-top shape should be a top priority. Not only will good credit help you get a loan, it’ll save you thousands and thousands of dollars over the years. One great way to improve your credit score: lowering your personal debt.
You’ve got some money in the bank. A down payment is a chunk of change and a significant step in the buying process. The great news for first-timers who don’t have a huge savings account — you can buy with as little as 3.5% down. That’s still serious money, but much more achievable for many. Just be careful not to spend everything you have on the money down. You’ll need cash for closing costs, insurance and taxes. And you’ll want some left over for that new set of furniture!
You’re ready for the responsibility. And the last — but maybe the best — sign you’re ready to buy: you know in your heart that you’re ready and willing to take on this big responsibility! There will be leaks, creaks and drafts, rickety roofs and worn-out water heaters. If you know you’ve got what it takes to take on these challenges and more, then you just might be ready to buy!
Happy house hunting! And congratulations on fearlessly pursuing another dream!
Related Topics: Finance