Buying a house is a compelling thing to achieve, but before entering into this important phase of your life, ensure that you have asked the right questions to yourself. If you find yourself caught in the dilemma of whether you’re ready to buy a home or not—the following blog will help you make the right decision.
Owning a house is still a dream of many—living this expensive dream might take some time but going to be one of the best experiences of your entire life. When we see that we have earned something precious that we call home, where our loved ones live and make memories—this makes every penny we’ve invested and hard work we’ve done worth it.
While purchasing a home can be a dream, financial milestone, and worthy investment, homeownership comes with so many challenges. From paying texts to filling the home with essential things to ensure maintenance, there are plenty of things that you need to consider. This is why don’t make impulsive decisions until you’re absolutely ready.
Even if you tell your parents that you’re planning to purchase a home, they will ask you, “are you ready to buy a house”. They are elders and have lived almost 50 years of their lives, they understand how shiny it seems from the outside and how it is from the inside.
So, before even beginning to find the right realtor, ask yourself, “am I ready to buy a home?” If you don’t seem to find the answer, here are 10 signs to tell you when are you ready to buy a house.
1. A good credit
Stuck with “how know when to buy a house”? Well then, check if you have a credit score ranging between 300 to 850. Being said that, you don’t need the highest credit score to buy a house, but it shouldn’t be bad to qualify for the mortgage. A good credit score will help you receive a low-interest rate.
To purchase a house, you should have zero debt and a stable emergency fund. Whether it is a car loan, credit card debt, or student loan—make sure that you’re good with them all. Ensure that when you buy a house, you don’t have any other kinds of big fat bills to pay. Owning a home comes with plenty of challenges that include furnishing, repairs, insurance, property tax, maintenance, etc. This is one of the essential factors that will help you decide the time when are you ready to buy a house.
3. Stable job
While every kind of job (whether it is a marketing head or a confectionary shop owner) comes with uncertainties, the longer you have the position under your belt, the more you always will be able to get the homeownership. Having a job is such a flex—no matter how many hours you work, you’re able to pay your bills on your own and are eligible to purchase a house.
4. A passive income
Money is never going to be enough, so before buying a house, find a way to earn passive income. It is always good and reliable to know that apart from that steady income, you’re earning the extra money that you can put in home maintenance or enjoy a date out with your family or friends. A way to extra income always takes your financial vulnerability away and ultimately makes you a stable-minded person.
5. Savings or emergency fund
You can’t predict the future, so it is always best to prepare for uncertain circumstances. In real life, money is one of the things that can save you from disasters and post-disasters so, while purchasing a new house, make sure that you have enough cash in your bank, for exceptions. Don’t plan to rely totally on monthly income to cover unexpected costs, always have emergency funds prepared to save the day or month.
6. Good down payment
One of the best ways to purchase a house is to put a hundred percent down. If you can’t pay cash this year, then set a goal to save at least twenty percent of the total as a down payment. This will help you achieve your goal next year and save you from getting stuck with pesky PMIs.
7. Future goal configuration
Make sure that your future goals don’t involve any big investment such as buying a car or traveling to a new country. To understand how to know when to buy a house, you have to check if you have any big future plans related to your house or family. You will have to keep it in this particular way and control your expenses to avoid any kind of risk concerning paying off the mortgage. If your future plans are aligned in this way then you can decide to buy a house.
8. Long-term living
Purchasing a home is a long-time investment that requires you to be wise with your decisions. Before deciding that you want to buy a home, check if you are planning to live in it for the long term. Like we have said earlier, make sure that you don’t have any future goals that include hidden plans. You might be planning to move to another city next year, in such a situation, buying a home can be a bad decision.
9. An expert realtor
It is not an easy task to find a perfect house within your budget—this is why it is essential to consider hiring a realtor who lives, breathes, eats, and sleeps in the real estate market. Having an experienced real estate agent comes with so many benefits—it saves your time and money.
10. Your expectations
Last but not the least, you’re required to understand what your expectations are from a house. Understand yourself first and then decide whether you want to buy a house or not. Check if there’s an urgent need of buying a house or you can wait for the next three to four months or more until the realtor finds your dream house within your budget.
Questions like, “are you ready to buy a house?” are quite intimidating to answer but if you consider the above-given factors, you will find your answer. If you’re planning to purchase a home anytime soon, take a quiz with yourself and then decide if you really are ready or not.