There are many things that you need to consider buying a house such as the price, location, type of property and a plethora of other aspects. However before you proceed into the buying process, make sure that you’re ready for the responsibility of being a homeowner. Here are five signs that you could be ready to buy your first home.
1. You have the down payment ready
The first sign that you’re ready to start your journey of being a first-time homeowner is that you’ve set aside the desired 10% down payment to purchase your first property.
If you do not have the ideal amount for the down payment, then your home loan options will be limited and the overall purchase price for the property will become higher.
So by putting a down payment for a house, it shows that you are financially ready and earning a stable income that will ensure that you are able to repay the home loan. Moreover, the more that you are paying up front, the more you can save on interests in the long run.
Read about how you can save more money here: Millennials, hate an empty wallet? Here are 6 simple ways you can save money
2. You know what you can afford
Money is most often the largest motivating factor when purchasing your first home. It is important to stay within the budget that you’ve set out for yourself so that you would not feel too burdened at the end of every month. When you know what type of property you can afford, you’ll be able to work out a comfortable monthly repayment figure.
If the home repayment amounts to one-third or less than one-third of your monthly salary, then this is a good indicator that you can take the next step into buying your first home. But this is just a general guideline; if you have fewer commitments in your life then you could afford to raise your repayment amount.
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3. You have steady employment or earnings
Having stable employment or a steady stream of income earnings is another sign that you are prepared to purchase a property. Steady employment or income is one of the main factors that a bank will look at when it comes to your home loan application.
Other than that, the type of employment also plays a huge role when it comes to loans. Permanent employees who have been confirmed from well-established companies or those working in the government will have a higher chance of getting their loans approved than applicants with irregular income.
4. You have a healthy savings account
Homeownership costs include more than just property taxes and a monthly repayment; it is a lasting commitment. Before making your first big purchase, understand the various expenses involved such as insurance, water and electricity bill, maintenance fee if you live in a high rise building and many more.
Thus, it is recommended by experts that you have at least three to six months’ worth of living expenses in your savings account in case of an emergency. If you do have extra money to spend, it will definitely help to manage the unexpected costs of owning a house.
5. You’ve Been Renting For Long Enough
Renting could be an exhausting experience when you’ve been doing it for a few years and you want a space of your own. Eventually, you will have an urge to buy a home where you can do whatever your heart desires.
If you love the neighbourhood that you live in currently and are not planning on moving to another city anytime soon then buying a home could be one of the best decisions you’ll make. Instead of paying rent every month, you could be putting that money into paying the monthly home repayments for your property. Owning a home comes with its own sense of pride, gone are the days where you can’t paint and decorate your room however you’d like.
Know the difference between buying and renting: The Advantages of Buying Vs Renting a home
Do you find that some these apply to you? If so, then it might be time for you to finally be ready to purchase your first home. Are you unsure of how to get started in your homeownership journey? Our professional real estate agents will be able to help you in finding your dream home.
