So you’ve been house hunting and are wondering.. am I ready to buy a house?
Buying a house is one of the biggest purchases you will ever make. It can also be one of the most rewarding purchases when done right. Moving into a new home with your family can be one of the most exciting, albeit challenging, experiences. How do you know when you are ready to make the jump and purchase a house, though? We will look at six signs that you may be ready to buy a home. If you fit the criteria for all or most of these signs, you may be ready to make that big purchase!
1. Your lifestyle is stable
It makes little sense to buy a house if your lifestyle is unstable and there are many uncertainties. If your location is sure for you and your spouse’s work and your kid’s school, it may be time to take root and make that first home purchase.
2. Your income is stable
If your job is on the rocks, or you have recently started a new business, it may be wise to hold off on buying a home right away. You would want stability and reliability with your income before stepping out and committing to a large purchase such as a home.
3. You have a handle on any other debt
If you are battling to service your current debt, taking on more debt will likely compound the pressure on you. This, of course, may not apply if you are buying a house outright, but for most people who have debt, it is important to ensure you can maintain all your debt payments.
4. You have sufficient cash for a down-payment
Buying a property with an adequate down payment could not only let you save on paying Private Mortgage Insurance but could reduce your monthly installment and shorten your loan term. If you have a substantial amount saved, it could be time to take the leap and buy a house.
5. You need more space
Typically, as people get married and have kids, there is a need for a bigger home. This is usually when people look at purchasing a home for themselves and their growing family. There is something very satisfying about raising a family in your own home!
6. Your credit score is in order
If you plan on buying a house using a mortgage, this is an important step and a necessity. Banks typically will not loan money to people with poor or non-existent credit scores. If your credit score is healthy, there is a better chance that the banks will lend you money.
