Do you think you’re ready to settle down and have your own place?
Buying a house is one of the many milestones of adulthood. Studies show that the average age for first-time homebuyers is between 31 to 33 years old. If you’re nearing this age, you may be thinking about buying your first house.
It’s an exciting and liberating experience, but it’s also a huge financial decision. How do you know If you’re ready to own a home? Before you think of buying a house, consider the following factors.
In this article, we help you determine if you’re ready to own a house. Read on to find out more.
You Have a Stable Career
Having a stable career is one of the first signs that you’re ready to own a home. Consider your current position and how you think your career will evolve in the future. If your company is on shaky legs, you may need to put off buying a house for now.
Will your career trajectory be able to handle volatile economic changes in your area? Working at the same company for at least 2 years is usually a good sign of a stable career. However, if your job requires you to relocate often, you may not be ready to buy a home.
You Have a Good Credit Score
Before you consider home ownership, take a good look at your credit score. This plays a crucial factor in your mortgage loans. A higher credit score means lower interest rates.
It doesn’t hurt that a good credit score makes it easier to get loans approved. Mortgage lenders rely on this information to determine how good you are at paying your debts. If your credit score isn’t looking the best right now, work on improving it first before you go house hunting.
You Have a Healthy Savings Account
Knowing how to allocate your funds is only a small part of adulting. A robust savings account shows that you know how to manage your finances. Knowing when to put some money aside shows that you’re ready to handle more financial responsibility.
A healthy savings account also means that you’re prepared for surprises and emergencies. It’s good practice to put at least 20% of your income into your savings account. If this isn’t a problem for you, you may be ready to buy a home.
You’ve Paid All Your Debts
Paying your debts is not only a sign that you’re a responsible adult. It also improves your credit score and gives you a higher chance of paying your mortgage. Reducing your student and credit card loans is a huge sign that you’re ready to buy a house.
If you’re still working on paying off debt, it’s best to wait for a better time to buy a house. Having car or student loans won’t hurt your chances of qualifying for a mortgage loan. However, it’s best not to have debt on your mind while you’re working on paying your mortgage.
You Can Afford the Payment
Have you been thinking of buying a home for a while now? Chances are you’ve already started calculating payments. There are a few upfront costs to cover when you first buy a home, but the biggest is the downpayment.
Aside from mortgage, principle, and interest, you also need:
- City Assessments
- Homeowner’s Association fees or HOA
- Sewer, water, and garbage, and
- Other utilities
A mortgage calculator can give you some idea of how much you should expect to pay monthly. However, it’s best to talk to a financial consultant. Once you have a good idea of your expected monthly expenses, you can determine if you’re ready to buy a home.
Mortgage Rates Are Low
Check out real estate properties in your area. To get a better idea of the local market, consider talking to a real estate agent. If the real estate market is looking buyer-friendly, now may be the best time to go house hunting.
Even if you can afford the mortgage and then some, it doesn’t hurt to take advantage of this opportunity. It’s best to save money when you can, especially for a huge financial decision such as buying a house.
You’ve Been Looking to Settle Down
Leaving your party days behind is often a good sign that you’re ready for adult life. Prioritizing your savings and future shows that you’re prepared for bigger responsibilities. If you’ve been looking to settle down, buying a house can be a great next step for you.
Many people look into buying their first homes when they’re married or have kids on the way. Your lifestyle is a huge factor in determining if you’re ready to own a home. If owning a house now seems easier than renting in the long term, it may be time to start house hunting.
Not sure where to start? Find a townhouse for sale here!
You Want More Privacy and Control
If you’re renting an apartment, you may be struggling with privacy and control. No one likes hearing their neighbor blast music or move furniture next to them. Owning your own house offers more privacy and control over your space.
The best part is you can customize your house as much as you want. You don’t have to worry about losing your deposit because you wanted a wallpaper change.
You Can Handle Basic Home Maintenance
Owning a house does not only mean completing your daily chores. It also means that it’s up to you to handle basic repairs.
You can no longer rely on your landlord to fix a broken dishwasher or a leaky pipe. If you’re confident in your maintenance skills, then you’re ready for home ownership.
Signs You’re Ready to Own a Home
Wondering if you’re ready to own a home? Here are some signs that you’re ready to make that big decision.
Now that you’ve decided to buy a home, what’s next? For more home ownership advice, check out our other blog posts. We cover some great tips on buying a house for the first time.