6 Signs You're Ready to be a Homeowner
6 Signs You’re Ready to Be a Homeowner
Taking that step from renting or moving out for the first time is an important moment in anyone’s life. This is the time when you feel that you are ready to truly plant some roots and settle down. Owning a home comes with many advantages. There are of course a few drawbacks that are important to consider. The advantages often outweigh those drawbacks. Being strapped with financial obligations can seem intimidating but if you’re prepared there’s nothing quite like owning a home.
If you’ve been looking for a sign that you are ready to move to the next stage of life and become a homeowner, here are 6.
1. You Think About What You Want in a Home
This has an impact on every other sign along the way. You need to know what you’re looking for or at least have an idea to understand if you’re ready. How many bedrooms do you need? What area are you interested in? Questions like this will shape the market that you will be looking at. Depending on your needs you can understand whether or not you have enough saved to take that step. This leads right into our next sign:
2. You Can Afford The Down Payment
You’ve been responsible with your spending for years and finally saved up enough to make a down payment. Depending on the house you want you’ll need to have saved up a certain amount of money. Depending on your lender you will need to deposit anywhere from 5-20 percent of the home’s price tag. You also need to make sure that you have a little extra saved for closing costs. You can get a full breakdown of closing costs here.
3. You’re Sick of Spending Money On Rent
If you’re currently renting you are giving money to your landlord every month and seeing no actual return. Buying a home is an investment in a lot of ways. Your monthly mortgage payments will get you closer to actually owning something rather than simply being allowed to stay in that space. You also won’t have to worry about rent changing or being kicked out of your home as long as you can afford your mortgage you can stay there as long as you like.
When you decide it is time to move on you will see a return on that investment and be able to sell your house before moving on to the next chapter. You will own an asset that has real value that often increases depending on the market.
4. You’re Ready To Settle Down
You don’t feel like moving around anymore. You’ve found your city and you want to own a little piece of it. You may have also found your person and are looking to start a family or just settle in together. Buying your first together home is often how this step is taken. Whatever your situation may be, you are ready to settle in for the long haul in one place.
5. Good Credit Score
Establishing a good credit score is crucial when you are looking to get a bank to lend you money to buy a home. This means being careful about the debt you take on and being sure to pay your minimum on time. In general, you should aim to have a credit score above 600. There are ways to improve your credit such as requesting a higher line of credit, paying all credit card minimums on time, applying for more credit cards, and improving your debt-to-credit ratio.
6. You're Willing to Take Care of a Home
Caring for a home is no small task. It can require a lot of work. You need to keep up with cleaning, yard maintenance, and little fixes around the house. This can cost time and money. Make sure you're able and willing to take care of things. This is a labour of love and it may seem daunting at times but it will also invoke a sense of pride as you care for your home. Taking care of a home can be very rewarding.
Guess You’re Ready
If you’ve checked all these boxes it sounds like you might be ready to buy a home and move onto the next step. If you have not checked all these boxes but want to buy a home you know what to work on and can get ready.
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If you are looking to buy a home be sure to get in contact with one of our agents, we would love to help you reach that goal.