How to know it’s time to make a real estate purchase
There comes a time when you’ve had enough with renting and you’re ready to buy your first property, but how do you know if you’re really ready? This piece will showcase the 5 major signs that are telling you that you’re ready to become a homeowner. From financial preparedness, to travel and work schedule, to life stage and future planning and goal setting. Here are some telling indications that you’re ready to buy a home.
You feel truly ready to settle down
Maybe you’ve moved apartments every year since college, or you spend months living in different places around the world. It can be hard to transition to a home. It’s usually a good time if your career is in place and you know you won’t be moving for work in the next few years. If you’re planning on starting a family, and if the prospect of staying in the same place for at least five years doesn’t scare you, then you’re probably mentally ready to settle down.
You know what a mortgage is, and what your options are
Most mortgages last for about 30 years. Of course, you can pay them off or sell and move before that, but most experts suggest living in your home for at least five years to not lose money. There are different types of mortgage loans, including special loans for farmers and veterans. Do your research and have an idea of which option is best for you before jumping into the home-buying process.
You’ve thought long and hard about renting vs owning
The debate between renting and owning is essentially a debate between freedom and financial rewards. Renting gives you flexibility and less responsibility as far as maintenance and other home issues that could arise. Owning gives you tax breaks, equity, and assets. Look at the current market, look at your finances, and consider your future plans when making a pros and cons list for renting vs owning.
Your debt and credit is under control
If your finances aren’t in order, you’re probably not ready to buy a house. Life is rife with the unexpected, so don’t put all of your savings toward buying a home. Have an emergency fund, plus enough money saved for a down payment. Ideally, your monthly income will cover your mortgage and other bills, while still allowing you to save for emergencies and long-term planning. Eliminate credit card and other debt to have extra money for unexpected homeowner expenses like repairs, furnishings, insurance, and more. Eliminating your credit card debt before purchasing a home will not only help you in the long term to have extra cash, but will also help you get approved for a better mortgage loan. Bad credit means higher payments.
You know what it means to own a home
There is no landlord to call when you have a leaky faucet and you are a homeowner. Ask yourself if you are ready to take on all of the responsibilities that come with the territory, from mowing your lawn in the summer to shoveling snow in the winter. Owning a home is harder and more expensive than renting, but comes with many benefits too. You’ll have a place that is yours to fill with memories and will help you financially in years to come.
Don’t forget, when you’re seeing these signs of pending homeownership lit up in neon, you’re going to need an expert and seasoned professional on your side. That’s where ALO comes in. We’re the best choice attorney to have on your real estate power team. Now that you’ve thought about these five things, are you ready to buy? If so, check out our first time home owner’s guide!