Of all the people who bought homes in 2019, 33 percent were first-timers.
Now, you think you want to be one of them. But it can be hard to tell you’re ready to own your home — it’s not all about finances, after all.
Here’s a checklist to help you gauge your position. Here are five of the key signs you’re prepared to buy a house.
1. You’re A Solid Renter
Firstly, you should feel ready to own your home if you’ve got a proven track record as a renter.
That means you know how to budget well. You’ve paid your rent on time, and you’ve had no trouble covering the utilities, too.
Of course, homeownership is slightly different than renting. You’ll have to cover your mortgage and utilities. But there are also state and local taxes to pay monthly or yearly.
Nevertheless, if you already have a handle on your finances as a renter, it should be a smooth transition into paying for a home you own.
2. You Want To Personalize Your Space
There are plenty of reasons why buying is better than renting. Decorating your home as you like it is one of them.
When you rent, you often can’t change the design of your living space. You might be able to hang pictures on the wall or re-paint. But you can’t do major renovations, nor would you want to in a property you don’t own.
Homeownership changes all of that, though. Once you buy your place, you can make it look however you want. If you crave a customized abode, then it might be time to look into buying.
3. Your Job Is Solid
Owning a home provides stability, of course. But you should have a baseline amount of security before you buy a place.
Evaluate your career path before you start looking for a property to buy. If you feel set at your company or in your profession, then it might be the right time to start looking into homeownership, too.
Remember, most mortgages span 30 years. You don’t know what the future will hold, but you can gauge when you feel settled professionally.
4. You’ve Managed Your Debt
Before you get a mortgage, your bank will make sure you don’t have too much debt. For millennial buyers especially, this hurdle is a difficult one to overcome. Student loans will factor in, so take time to pay down your debts before looking into homeownership.
Of course, other types of debt can make it tough to buy, too. For instance, if you’ve maxed out your credit cards, you might not be able to get a mortgage.
But if your loans are in check, then you have another sign you’re ready to own your home.
5. You Know What You Want
You should consider yourself prepared to buy a place if you already have your buying a house checklist in order.
What are must-haves? In which areas do you want to live? How many bedrooms do you need?
Once you have an idea of the property you need — and want — you are ready to dive into the real estate market.
You’re Ready To Own Your Home
Now that you’ve gone through our five key steps, you know whether or not you’re ready to own your home. What’s the verdict?
Whether you’re going to start shopping or you need more time, we have all of the real estate info you need. Read up on our blog, so you’re prepared for the property market, now or in the future.
