Deciding to buy a house is an important choice in life, so here are four ways to know whether it’s time to make this long-term investment!
1. Is your budget ready to buy a house?
Sitting down and calculating your savings and monthly income will give you a clear picture of what you can handle budget-wise right now. Remember, you might qualify for a great mortgage, but not be ready financially to take on all the responsibilities of owning a home. So do extensive research, know which extra costs to look out for, and find out how much house you can afford before deciding what you can handle financially.
2. Why do you want to buy a house?
It’s vital that you consider the why behind your desire for a home. Ask the following questions before you begin the home buying process:
- What do I hope to get out of owning a home?
- Does owning a home right now fit into my long-term life plans?
- What outside influences are informing my decision to buy a home?
3. Is your employment secure enough to buy a house?
If your current job is going well and you are almost certain you’ll stick around for some time, you’re in a great position to buy a home! Beyond the convenience of knowing you’ll be in this location long-term, a steady job will greatly improve your home loan options.
The opposite is also true: if you haven’t been in your current position for long or aren’t sure if you’ll keep your job, you may need to wait on buying a home.
4. Are you emotionally ready to buy a house?
While buying a home is a major financial decision, it is also a significant emotional step! Being nervous about such a large purchase is completely normal, but be sure you know where that nervousness is coming from!
If you’ve been considering buying a home purely because you’ve felt social or family pressure to do so, you are likely not ready to make this commitment. On the other hand, if you’ve been dreaming this up for a long time and have been excited about the prospect of making a house your home, you might just be ready! Don’t downplay the importance of this commitment; your home buying experience will be less stressful in the long run!