Adulthood approaches fast and comes with many responsibilities like buying a home. Although it is a nerve-wracking process, it is a sign of stability and maturity. Buying your first home is a big decision that requires serious thought. If you’re thinking about it, it might be the right time to begin the home purchase process. While you may be tired of being a tenant, there are many tell-tale signs that you’re ready to buy your first home, including:
Your job is steady
As a young adult, it can take time to find your footing in the profession of your choice. However, after some time, you can find stability and secure a long-term position. If you’ve been working in the same institution or company for more than two years, your financial stability is most likely to be enough to secure a mortgage. It also becomes easier to get a loan pre-approval when you have a steady and secure job. If you have stable employment history, health benefits, and an ideal work-life balance, it’s a good time to consider buying your first home.
Your finances are looking good
Buying a home is among the most expensive investments you will make in your life. Apart from the down payment and closing costs, it comes with additional expenses like homeownership taxes, inspection fees, mortgage, insurance, and agent fees. You require a large amount of savings and stable finances to keep up with these costs, especially those that occur monthly even after the purchase.
If you have stable employment with job security, it’s a sign that you’re ready to buy your first home. Apart from that, you can have other investments in business, stock market, or side-hustle that contribute to a positive cash flow for stable finances.
Your credit score is high
Having a high credit score can get you a better mortgage with lower interest rates. Regardless of whether you’re financially stable, ensure that you build a better credit score before entering the home buying process. When you’re proud of your credit score and have eliminated any possible errors, you can be confident that it’s time to start looking for your dream home.
You’re exhausted with renting
When you’re young and just starting a life away from home, moving from place to place seems fun. However, renting can be exhausting, especially when you’re ready to settle. Buying your first home gives you more freedom and security, even at an old age. Regardless of age, if your finances are in order and you feel ready, buying your first home can save you the strain on your savings that comes with renting.
You’re ready to settle
Moving from city to city is exhausting, but when you decide that you’re ready to settle for the long-term, this is a sign that you’re due for homeownership. It’s conventional wisdom that if you’re planning on staying in a home for at least five years, owning it makes financial sense. A period of over five years allows your home to build equity and appreciate, ultimately offsetting agent fees and home purchase closing costs. It increases your chances of making profits or breaking even if you decide to sell.
Paying bills when you’re in debt is concerning, especially if you’re considering the additional expense of buying a home. However, if you’re debt-free and clear of credit card bills, it’s an ideal time to invest in your dream home if you’ve been thinking about going into the venture. When a positive flow of income, available mortgage, and no debt to stress over, it is a safe period to purchase a home as you can cover additional homeownership expenses with ease.
You need more space
When you hit a milestone in your life, for example, get married, deliver your first child, or getting a pet, it’s a good time to start thinking of buying a home. It’s okay to raise your family in an apartment, but the more space you need, the more expensive it is to rent. You can buy property at the Vue with multiple bedrooms that are more spacious to accommodate your family and a pet if you decide to get one.
You’re ready for the commitment of homeownership
Owning a home comes with more responsibility than renting. While you were used to paying rent and bills like electricity and water, being a homeowner leaves you with multiple responsibilities. If you’re ready to make repairs, call in professionals when you need assistance, grow your home’s value, and personalize it, that’s a sign that you’re ready to buy your first home. Ensure that you have an emergency fund before you commence your home buying process for extra costs such as repair, decorations, and furnishing.
You know the type of home you want
If you’ve been putting a lot of thought into the kind of house you want, be it a duplex, single-family unit, or an apartment, it’s a sign that you’re ready to be a homeowner. You can dig deeper into the specifics of the home you want, such as the square footage, number of rooms, location, type of floors, and amenities. Knowing what you want as a homeowner makes it easy to narrow down available homes, and you could be on your way to close a homeownership deal as soon as possible.
You feel the time is right
If you have an overwhelming sense that it’s time to buy your first home, go ahead and make the big move. Sometimes, going with what your gut tells you is an indicator that you’re ready for what’s ahead of you. When challenges arise, you’ll be in a position to deal with them. Although you shouldn’t ignore your intuitive sense, be honest about what you want and what you can afford.
Being a first-time homeowner is a great achievement that comes with a lot of responsibility. Achieve your dream to buy a home when you feel the time is right and all the signs point you towards that venture. If your finances are in good shape, you know the type of house you want, and you have a high credit score, it’s time to take that leap into homeownership.
Have a Great Week!
Disclosure: This post MAY contain affiliate links and I may receive compensation if you make a purchase after clicking on any of my links. For more information about FTC disclosure requirements, please see here.