If you’re a fan of browsing real estate listings online, attending open houses, and binge-watching HGTV, you probably want to purchase a home of your own. The fact is that you are not alone in feeling this way. With the addition of new construction, Time Shatter estimates that 5.99 million existing houses were sold in the United States in 2017.
In addition, purchasing a home is one of the largest financial purchases you’ll ever make, which requires careful planning and preparation. Make sure you can handle the burden of owning a property before you begin the purchase process.
As a result, the process of purchasing a home may be tense. Even if you’ve been mulling over the idea for some time and have a solid strategy in place, it may be time to act. The following are 14 indicators that you’re ready to purchase a home.
1. You’re Able to Stay in the Same Place for a While
It’s exciting to lead a seminomadic existence while you’re younger; if you want to test out new areas, renting is a terrific alternative. While it’s possible that you’ll ultimately want to settle down, Owning a house is an excellent choice if you want to remain in the same area for a long period of time.
2. Does Your Personal Space Make You Feel Confident?
Renting limits your ability to make changes to your living quarters. In most cases, you’ll need the owner’s approval before making minor alterations like painting or changing fixtures. On the other hand, because you’re no longer accountable for bothersome repairs, Owning a property gives you the opportunity to carry out anything from minor modifications to a complete tear-down. It is your responsibility to make repairs when they are necessary. If you’re ready for total control (and responsibility), owning a house may be just what you’ve been looking for.
3. More space is necessary.
Depending on whether you live alone or with a significant other, there are numerous options for one- and two-bedroom apartments. However, you may find yourself in need of greater space in the future. An additional bedroom or office may be needed for things like children, at-home hobbies, or a home-based company. With regards to expanding your living space, it may be wiser to buy your own home rather than rent a house and pay someone else’s mortgage.
4. You’ll be able to handle your mortgage, property taxes, and utility bills.
Unless your lease includes utilities, you’ll need to set aside money each month to cover your rent and any other costs that may arise. When you buy a house, there are a few additional costs that you must deal with. It is important to include the cost of a mortgage, utility bills, taxes, and any townhouse or condo fees before deciding to purchase a home.
5. Your financial condition is in order.
The only way to purchase a house without a mortgage is if you have the money to do it entirely. Debt management is a requirement for obtaining a mortgage loan. For those with high credit card debts or student loan debts, now may not be the best moment to purchase a property.
6. Your credit rating isn’t bad.
To get a mortgage, banks, and lenders want to know that they can rely on you to pay them back. Therefore, they’ll check your credit score. An evaluation of your spending and repaying habits is used to get this score. In accordance with Time Money, a credit score of 720 or above is outstanding and may vary from 300 to 850 (in certain versions, as high as 900). If you don’t know your credit score, there are a number of credit score applications and websites that may help you find it.
7. You’re frank about the state of the economy.
On House Hunters, you may have seen that couples with small budgets are able to purchase enormous properties. While it may be possible in certain areas, the housing market changes greatly from place to place and year to year, making this a difficult alternative to pursue. Consider your financial situation before deciding on a price range for a property.
8. You are able to purchase a home in the area of your choice.
There are many advantages to renting rather than buying, particularly if you wish to reside in a location where real estate is too expensive. Even if you can’t afford to buy a house in your ideal area, renting can be a better option for you.
9. You are prepared to make a down payment.
It’s recommended that you have 20% of the whole amount on hand for a down payment. At least $40,000 in cash is required for any purchase of property that costs more than $200,000, such as a house. If the properties you’re interested in cost $500,000 or less, you’ll need to put down at least $100,000. Make sure you can afford the initial outlay before making a purchase decision.
10. You’re prepared in the event of an unexpected financial setback.
The down payment and moving charges for a new house necessitate having adequate money in your bank account, but it’s also wise to have an emergency fund on hand in case of any unforeseen financial needs. If something unexpected happens, an emergency fund might help you keep your feet firmly on the ground.
11. You’re prepared for routine maintenance and upkeep.
Because owning a property entails a lot of labor, renting allows you to delegate the grunt work to someone else, such as a building owner, superintendent, or management. As a result, owning a house means you’ll have to deal with anything from leaky pipes to roof repairs on a daily basis. With a little practice, you may be able to do certain modest-to-medium-sized tasks on your own. Nevertheless, when bigger problems arise, you must be prepared to chase them out and bring in specialists. All of this comes with a cost, as well.
12. You’re well-versed in the intricacies of legal procedure.
Owning a house requires a thorough knowledge of the law. When buying a home for the first time, you’ll need the assistance of a lawyer or real estate agent. After becoming a homeowner, you may find yourself needing the assistance of a lawyer to handle complicated legal matters.
13. The emotional roller-coaster is ready for you.
Even while buying a house may seem like a dream come true, the process may also be terrifying. When you’re bidding on a house and waiting for a call to inform you that your offer has been accepted, it’s virtually impossible not to become excited. Because of this, it might be upsetting if you miss out on a great opportunity. There are a number of times when it occurs! Make sure you’re ready to ride an emotional roller coaster before you enter the real estate market.
14. When the time comes, you’ll be able to recoup your investment.
Purchasing a property may be your entry point into the real estate market, but it is quite unlikely that you will stay in that home for the foreseeable future. Starting off with a modest home, townhome, or condo is the norm for most first-time homebuyers. Be sure you’re ready to sell your first house when the time comes, since it may be just as emotional as purchasing your first.