Purchasing your first home is a major milestone. Whether you’re moving out of Mom and Dad’s house or you’re no longer interested in renting an apartment, purchasing a house of your own is a life-changing decision. It’s important for you to be fully ready for the responsibilities that come with being a homeowner before you put in an offer.
I’ve helped hundreds of individuals and families secure the home of their dreams, but most importantly, I’ve ensured that they were in a position in their life which they could take on such a big responsibility. The following article will discuss how to know if you’re ready to buy a home.
The Cost of Your Down Payment
In today’s housing market, you can secure a home with a 5% interest rate: in some cases, even lower. The down payment on your first home will be a considerable investment, and whether it’s a $5,000 payment or a $15,000 payment, there will be other financial obligations that come with it. For example, you have to take closing costs into account. If you’re struggling to afford a $15,000 down payment, you will also be unable to pay for things like house insurance, property tax, closing costs, and home upgrades or renovations. It’s important to give yourself some financial breathing room – review your finances before putting an offer in on a home to ensure you’re not putting yourself in a vulnerable position.
Current Debts
Touching upon our previous point, it’s necessary for you to take care of all unpaid loans and debts before you consider purchasing a home. If you have a number of loans (i.e. student loans, car loans, etc.) that are years away from being paid off, consider paying them off before adding a mortgage to your plate.
Furthermore, take a look at your credit score. Do you have enough of it to secure a mortgage pre-approval loan? Or is your current credit rating poor? Bad credit can affect your ability to purchase a house; therefore, consider working to improve it before deciding to buy a home.
Preparedness to Take Care of a House
One thing that really separates homeownership from renting an apartment, or living at home with Mom and Dad, are the maintenance responsibilities. You won’t have a landlord to take care of your lawn and issues with your plumbing or electrical work. You also won’t have Mom and Dad there to fix things for you. As a homeowner, you must be willing to learn how to take care of your home independently properly.
If you’re purchasing your first home, you’ll need professional help to guide you through the home buying process. For more information, contact Gail Bouw today!