So You Want to Become a Homeowner? Here Are Some Surefire Signs That You’re Ready to Buy Your Very First Home!

If you’re thinking about buying your first home, first off, congratulations! Purchasing a home is the most exciting thing you’ll ever do. The next homes you buy, not so much. But evertumblr_miwxyhfMhi1s5kypqo1_500yone remembers the first time they bought a house. It’s the same with a car. You’ll never forget the feeling you had when you first purchase a house or a car all by yourself. Here are some signs that you’re ready to be a homeowner.

1. You want to settle down. Buying a home is a huge investment, and many financial experts advise staying in your home for at least five years to avoid losing money. Maybe you want to start a family, or perhaps you’re moving forward in your career. Whatever your motivation, if the idea of staying put for the next five years is exciting, you might want to start house hunting.  

2. You’ve researched mortgage options. There is more than one way to buy your first home. mortgage loan types range from conventional, 30-year mortgages to special loans for veterans or farmers. If you’ve already done your due diligence and have a good idea which mortgage is the best option for you, you’re well on your way to owning a home. 

3. You know the pros and cons of renting vs owning a home. 
There are obviously major differences between renting and owning a home. Renting provides more freedom, but owning a home typically offers greater financial rewards through tax breaks, equity, and other factors. If you’ve identified the pros and cons of both options and come to an educated decision based on the current market, your finances, and your future plans, home ownership might be a great choice.

4. You have excellent credit. Whether you rent or buy a home, excellent credit is important. As a renter you may be stuck with a large deposit, but if you go to purchase your first house with bad credit, your mortgage is likely to be denied altogether. A good credit score is also the ticket to a lower mortgage interest rate. 

5. You want to take advantage of equity. One of the greatest benefits of buying your first home is the equity it accumulates over time. As the gap between how much you owe and how much your home is worth widens, the equity in your home becomes like a savings account.

Knowing that your equity can help fund a college education, prepare you for retirement, or save you from financial emergencies can provide you with great peace of mind.

2 thoughts on “So You Want to Become a Homeowner? Here Are Some Surefire Signs That You’re Ready to Buy Your Very First Home!

  1. Please be sure you are financially ready when you buy a house. Buying a home is likely the biggest financial transaction of your life. Failing to take time to figure out how much house you can afford is an obvious sign you’re not ready to buy one. A general rule of thumb is not to spend more than 30% of your gross income on a mortgage payment, which includes principal, interest, property taxes, and insurance. Heed this advice. Too many young homebuyers buy a house because they feel like they can afford it, but there are so many more factors than financial. If you’re too young (which you don’t feel you are, when you are), you should write down your life goals and plans to see if you’re even going to stick around long enough to be in that home.

  2. Well said, Carol. Buying a home is not a joking matter. You should always be sure that you also have an emergency fund before you purchase it. Do not deplete your savings and/or emergency account in order to pay for the downpayment.

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