Buying a house is a huge commitment to make. You’ll need to be both financially and mentally capable of taking on the burden of responsibilities that come with homeownership. Otherwise, you might find yourself overspending or regretting your decision. It’s not just important to buy the right house for you, it’s also important to have the right reasons for purchasing one. Here are some easy ways to tell that you’re prepared to purchase your very own home:
You’ve saved up enough money
While it’s difficult to save up for the entire cost of the house, you should at least have a solid amount of money set aside to cover the down payment on your house and to pay for any repairs and concurrent costs that come with buying one. This includes money for at least four to six months worth of living expenses. You can always find an authorized mortgage lender to help you pay for the rest.
You have a stable job
Before you commit to buying a home, you should make sure that you’re holding down a secure and stable job with a steady income. If you don’t feel confident about your employment situation, then it’s best to wait until you’re fully settled into a more solid company and career.
Your debt is manageable
Even if you have a debt to your name, whether that be because of student loans or credit card dues, it’s still possible to buy a home. However, that’s only true if you have a low debt-to-income ratio. This means that your income is much higher than your monthly debt obligations. A good ratio improves your chance of getting approval for a mortgage, and it just means you’re more financially capable of owning a home.
You actually need the space
You want to own a home, but do you really need to? Bigger doesn’t always mean better when it comes to owning a house. There are plenty of maintenance and utility costs that you’ll have to shoulder that just might not be worth the hassle. Before you move out of your current living situation, think about the reasons you want a home. If you only need an extra bedroom, consider a bigger apartment or a townhome instead. Otherwise, if you actually need the space because you have children or are thinking about starting a family soon, then buying a house makes sense.
You have great credit
A credit score of at least 620 can already get you qualified for most mortgages, but it’s always good to aim higher. This will make you eligible for more competitive rates which will make purchasing a home more affordable. Consistently paying down your debt and proving yourself to be a dependable borrower will do wonders for your credit score.
You have a steady lifestyle
Most mortgages last around 15 to 30 years on average, so you should be willing to commit to staying in that home for that period. You might not be prepared to buy a home if you’re not entirely sure where your career is headed. Somewhere along the line, you might just pack up and move to a new city for better career options. If you’re intent on settling down, and if you’re already holding down a job in that area that you’re prepared to keep in the long run, then buying a home will be worth it.
Do these characteristics apply to you? Then you’re most probably ready to purchase the house of your dreams. Being prepared for homeownership ensures that you won’t regret a very costly and exhausting decision after the fact.