Buying a home is a step everyone wants to take in their life: but it’s important that it’s a well-planned choice. Whether you’re considering buying a home so you can rent it out as an investment, or you want to build a place where you can raise a family, these are the best signs you’re ready to buy a home.
Financial Stability and Growth
How stable is your financial health? Have you worked at your job for over five years? Do you have an income that’s only growing with a company you can trust? If not, it might not be the best time to buy a home.
If you’re already living paycheck to paycheck, it isn’t a good idea to add bills to that.
Living With a Long-Term Partner
Do you handle all of the bills, or do you live with someone you can split them with? Although many people don’t think that having a partner makes much of a difference when asking themselves, ‘should I rent or buy a house?’, it does change how much you can afford. Living with a partner who also makes a steady income gives you financial security and a larger amount you can pay per month for a home.
Your Credit Score is Higher Than Ever
How’s your credit score looking? When buying a home, it’s a good idea for your score to be above 700, with the 800s being the main goal. Avoid any large credit changes, like buying a new car or getting a loan for anything else, and work to build your credit score slowly and steadily. This will ensure you’ve built a solid foundation for yourself to get a loan off of and that you won’t have to worry about insane interest rates.
You Have the Ability to Make Good Decisions
Although we all think we know whether or not we can handle the huge choices we make, it’s a good idea to look at your recent track record for financial and life decisions and consider if this will be a good choice. Do you have a habit of quitting jobs out of boredom? Do you constantly find yourself wanting to uproot and move? Do you find yourself restless in the most stable environments? If so: buying a home might not be a great choice since it takes around five to ten years before selling it would turn any profit back to you.
The Market is In Your Favor
We’d all prefer a market that’s in our favor, but this isn’t always possible. If you can wait, the market usually settles and switches every five to ten years. This means that eventually, you’ll be able to get a home at a more affordable price and take your time looking, instead of the neck-breaking pace that properties have been selling at in America over the last couple of years.
Everyone Deserves a Home They Love
Whether you’re considering buying your first home or you’re helping someone else make this huge step, there’s a lot of planning that has to go into your first property. Consider all of these details before sealing the deal.