How to Figure out if You’re Ready to Buy Your First Home
Friday, May 1, 2020, 6:00 AM | Leave Comment
If you’re like most of those who are contemplating purchasing their first home, you’re probably experiencing a combination of excitement and apprehension.
You’re excited because owning a home is that last rite of passage on the often rocky road to becoming a fully-fledged adult, but apprehension is also often a part of the picture — after all, adulthood doesn’t come with a one-size-fits-all blueprint, and you may feel uncertain about whether you’re really ready to take the plunge.
Fortunately, there are several signs that indicate when a consumer is ready to buy that first home.
Following are five of them.
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You Debt Load is Low
A low debt load reflects positively on your credit score, and this increases your chances of being approved for loans offering desirable interest rates. It also leaves you with more ready income to use for mortgage payments.
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You’re Established in Your Career
You don’t need to have reached the upper rungs of the ladder for a home purchase to make sense. However, professionals in real estate services recommend that you at least have a firm foothold on the latter before signing the dotted line on a mortgage agreement.
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You’ve Got a Healthy Emergency Fund
Going into a home purchase without a significant amount of money put away for the proverbial rainy day is one of the main causes of foreclosure. Make sure you’ve got enough to help tide you over in the event of unexpected setbacks such as temporary job loss or illness.
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You’re Realistic About What You Can Afford
Many people end up being what’s known as “house poor.” This means that even though they can afford the home in theory, they’re sacrificing on lifestyle spending to the extent where their quality of life truly suffers.
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You Know What You Want
Even though it’s important for the financial stars to align before making a commitment to a home purchase, there’s an emotional component involved as well. You should know what you want in life as well as in a home. For instance, if you and your spouse are undecided about whether children are a part of your future, the home you fall in love with today may be a poor choice two years down the road.
Keep in mind that every first homeowner brings a unique set of needs and preferences to the table. It takes a great deal of honest reflection to determine whether it’s the right time for a home purchase, so don’t be afraid to take the time to really think it through.
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