Think it may be time to buy a home? But how do you know? Don’t worry! We’re here to help. Let’s take a look at the 7 signs that you are ready to buy a home.
Here are 7 signs that you are ready to buy a home
01. You have income stability – If you’ve had a stable employment status for a few years, and feel it will continue to support you for the future, then you can consider buying a home. Proof of income shows you’ll be able to pay the lender, or will have enough earned for a down payment.
02. You have an emergency fund – Unexpected expenses are something you’ll have to look out for, especially when owning a home. Having this fund will show you’re ready to take on the unexpected, such as repairs that could be needed in the future.
03. You’re able to manage debt – Having a history of good debt management is very helpful when buying a home. This history will likely be reflected on your credit score and helps you have better interest rates. Your debt to income ratio may also be considered; which shows your loan repaying ability.
04. You want to settle down in one location for a while – This should seem like an obvious one; if you have the desire to settle down for a while, buying a home is likely for you! Whether you’re looking to enjoy a certain place, start a family, or work a job for a few years, this option can be a good choice
Having a history of good debt management is very helpful when buying a home.
05. You have enough cash for a down payment – Putting down as much as you can for your home will help you in the long run. You’ll save on interest, by putting down a good down payment, so if you have some funds saved for your future house, that’s a good start.
06. You know how much you can afford to spend on a home – Consider how much you currently earn, and how much your current expenses are. Compare the expenses to what they may be if you moved into a new home or stopped renting. If you know you can afford it, then you can consider buying a home.
07. You’re ok with making a few sacrifices to own a home – You may have to make some sacrifices. Maybe it’s going out less, or perhaps driving a different route to you job. Leaving your current neighborhood, or transferring your kids to a new school. If these things make you too uncomfortable, maybe it’s a good idea to wait.
If you’re interested in starting the home buying process, click here. A Sage & Cedar agent will connect with you to talk about the market, lenders, closing costs, etc.
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