If you are getting tired of renting, you might be wondering if you are ready to own a home. The decision to purchase a house is the largest financial choice most Americans make in their lifetime. It’s important you know you can handle it before you take the plunge. Here’s a look at the major signs that you are ready start house hunting.
4 Signs You’re Ready to Own a Home
- You have established credit: If you have bad credit, it’s a usually a sign you aren’t ready to buy a house. If you are already struggling to pay current bills, adding a mortgage might be too much. Good credit will not only help you get a loan; it’s also a sign you’ve learned valuable money management skills.
- Job security isn’t an issue: Having a job that can pay the mortgage is obviously important, but you should also consider how secure your job situation is. If you don’t know how long your income will last, it might not be wise to take such a large loan.
- You have more than enough saved: Having a decent down payment saved is only the beginning. It can also be wise to save yourself a cushion to survive any issues if something changes in your income. If you are regularly setting aside savings, that’s a sign you are financially ready to handle the expenses of home ownership.
- You view the housing market as an investment: Buying a home means putting a large portion of your wealth into the local real estate If you wouldn’t buy a home in your city as an investment, you might not want to buy one as a residence either. If you like the idea of tying your net worth to the housing market, that’s a good sign that now is the time to buy.
You might feel hesitant to dive into home shopping, but if these signs sound familiar that means you’re probably ready. If you’ve always wanted to own a house, it might finally be time to buy.