Four Signs That You Really Are Ready For Homeownership
Posted on: 20 June 2017
Whether you're working with new home builders or are buying your first home is a huge undertaking. You have probably heard stories of people who bought too soon and ended up over their heads in bills and repairs they could not handle. To ensure you don't suffer the same fate, make sure you think long and hard before purchasing your first home. And keep an eye out for these four signs that you really, truly are ready to take this big step.
You have a stable job.
You don't want to buy a home and then months later, lose your job. Not only will you likely struggle to make payments, but you'll also have to find another job, which may require selling your home and moving. If your job is stable and you don't have plans of moving to a new company within the next few years, or if you're at least confident there are more opportunities in your field locally, then this is a sign you're ready to buy.
You have an emergency fund saved.
Not only will you need a down payment for your home, but you'll also need additional money set aside in an emergency fund. This is a lifesaver if something breaks, such as your furnace or washing machine. When you own a home, these things are your responsibility to repair, so make sure you have at least a few thousand dollars set aside in an emergency fund before you buy.
You have time to commit to moving in and caring for a home.
Owning a home requires a bit more of a time commitment than renting. Moving in is time-consuming as you may have to paint and make other small updates. You'll also have to spend time mowing the lawn, trimming bushes, and doing other maintenance task that the landlord takes care of when you rent. Make sure you have a bit of spare time in your schedule to commit to these tasks before you buy.
You have a good credit score.
Check your credit score through one of the free credit reporting sites. It if is in the "good" or "excellent" range, then you might be ready to buy. Buyers with ratings in this range are generally given good interest rates on mortgages. If your credit score is below the "good" threshold, you need to spend some time improving your credit before you buy.
To learn more about the factors you should have in place before buying a home, speak with a real estate agent in your area.
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