Are You Really Ready To Buy A Home?
It’s certainly fun to dream about the future and your perfect first home, but actually taking this gigantic financial step will likely to be one of the biggest decisions you’ll ever make. It can also be an extremely stressful process – and one that shouldn’t be entered into without a great deal of thought and preparation. If you’re on the fence, take a look at the following signs of homeownership readiness:
You have income security. Having a stable job and income stream is necessary in order to manage monthly mortgage, property tax and homeowners insurance payments. In fact, it’s difficult to qualify for a mortgage loan without predicable finances.
You stick to a budget. Establishing a monthly budget is integral to understanding where your money goes each month. If you live by a budget that you (mostly) stick to, you’re well on your way to responsible home ownership.
You’re understand the responsibility of home maintenance. It’s convenient to call your landlord when the driveway needs shoveled or the dishwasher goes on the fritz. Once you own your own home, however, the maintenance ball is in your court. If you feel confident about seasonal upkeep and surprise maintenance from time to time, you’re probably mentally prepared to own a home.
You’ve saved for a down payment. Although some mortgage loans require miniscule down payments these days, it’s financially savvy to out down at least 5 percent on any property investment. If you’ve got that – or more – stashed away, you’ve put yourself in good financial standing to buy a home.
If you have secure income, understand your budget, aren’t afraid of home maintenance and have some cash on hand for a down payment, you’re likely ready to join the ranks of home ownership. If you don’t feel ready just yet, follow the above signs of homeownership readiness to prepare mentally and financially for your future dream home.
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