5 Signs You’re Ready to Buy Your First Home
With the new year well underway, you might be making moves toward your 2019 goals, and perhaps one of those goals is to own your very first home. If this is the case – congratulations! Buying your first home is a major accomplishment and semi-initiation into grounded adulthood and putting down roots. This is one of the biggest decisions you’re going to make and one that shouldn’t be taken lightly. So, are you really ready?
Becoming a homeowner can be an incredibly rewarding experience for those who are truly prepared and ready for the undertaking. Yes, it’s exciting, but it can also be a stressful journey, as you take each step closer to signing on that dotted line for the first time. You must make sure that you’re not only mentally prepared but financially prepared. So, if becoming a homeowner is one of your goals this year, here are five signs that you should be able to check off that signify you’re fully ready to take on the process of home buying:
- Job Security: Those who are ready to become first-time homeowners must have job security, a steady, predictable flow of income. Without this, your purchase and ability to make monthly mortgage payments just won’t be possible. While you might think that making a mortgage payment is no different than making monthly rent payments, you’d be wrong. Remember, your mortgage payments will also include extra costs, including insurance and property taxes.
- Cash Flow: Along the same lines as having job security, you must have positive cash flow. In other words, you need to be bringing in more income than you’re spending on everyday expenses and don’t forget about any debt payments you may have accrued.
- Savings: In order to buy a home, you must be able to make a substantial down payment. This means that you should have savings on-hand that you’ve set aside over the years specifically for this acquisition.
- Budget Commitment: Unlike renting a place, owning a home is quite a large commitment. New homeowners often don’t account for all of the extra expenses that come with owning property. For instance, if something breaks in your home, like your HVAC system, the plumbing in your bathroom, the very roof over your head, etc., the costs associated with fixing those things falls entirely upon you. There’s no landlord or rental maintenance team to call in. Anything that goes wrong or needs to be updated comes out of your pocket. So, you must factor these additional expenses into your budget.
- Settled: For most, buying a home means that you are ready to settle, and put down some roots. Becoming a homeowner means that you’re looking for stability and comfort in a place that you can make and call entirely your own for the foreseeable future. It’s a place where you will continue to grow and shape your life. So, are you prepared and committed to investing your time, energy, and money in a home that will help you do so?
There are so many wonderful benefits to becoming a homeowner – if you’re ready. It’s a decision that carries a lot of weight and so must be treated with great care and respect. You must take the necessary time to weigh all of the pros and cons, as well as base your decision on the reality of your current situation so that you can make smart financial decisions towards attaining the lifestyle of your dreams.