You may have reached that point in your life where you think you're ready to buy your first home. Before taking that dive into the world of home ownership, ask yourself these 5 questions and see if it's time for you to buy!
1. Do I have A Steady Income?
If the answer is no, it might not be the best time to buy a home. Without having a regular income, trying to make monthly mortgage payments would be difficult. To be completely honest, without a steady income, your chances of getting approved for a mortgage are low. However, there's still good news. You can take this time of waiting to work on your finances. When the time comes (we promise, the time will come) you'll be ready to go!
2. Is My Credit Score Good Enough?
When talking about finances, we're sure you've heard of these 2 words: CREDIT SCORE. Your credit score is a HUGE factor in regards to buying a home. In order to have a credit score, one needs to establish and use credit. Credit can come in the form of credit cards, loans and/or consistent payments to a company that reports to the credit bureaus. The key is to use your credit responsibly. If you've maxed out cards or have accumulated high balances, this could negatively impact your score. So, if you are thinking about buying a home, make sure you have an understanding of your credit score.
3. Have I Saved Enough Money?
If you're ready to buy a home, you are going to want to have a significant amount of money saved. Besides the down payment requirement (which can range for 3%-20%) there are several other fees that come with the home buying process. Home inspections, appraisals, title fees and homeowner insurance are just a few related expenses.
4. Am I Ready To Be Settled?
Your first home does not have to be your forever home, but you should plan on staying there for a few years. If you're at a point in life where you don't like to be in one place for too long, home ownership might not be for you right now.
5. What Kind Of Home Do I Want?
After looking at your finances it's finally time to think about what kind of home you want. This is where you may want to think short and long term. For example, you may decide that you want your first home to eventually become an investment property, so purchasing a multi family unit may make sense. Or, you may see yourself with a significant other/family in the near future, therefore finding a home that has a little extra space, may be ideal for you. While no one knows exactly what the future has in store for them, if possible, try to think of the present and future when determining your homebuying goals!