At some point in your life you may begin to question whether you should continue renting or if it’s the right time to transition to being a homeowner. Deciding to buy a home is a large financial and emotional decision which deserves a lot of thought. If you’re unsure of whether you’re completely ready commit to owning a home, consider these traits of a potential first-time homebuyer to help you make the decision.
A first-time homebuyer has:
You don’t want to throw every penny you have towards your potential house. If you have enough savings to make a reasonable down payment, pay closing costs, and have at least 2-3 months’ worth of mortgage payments in reserve you’re on the right track to becoming homeowner.
Resources and time
Owning a home takes a lot more upkeep than renting. If you have the time to commit to mowing the lawn, performing renovations, and taking care of any maintenance problems which may arise, then you may be ready to own your own home.
If you’ve been at the same job for approximately two years you have enough job security to own a home. Even if you don’t have two years at the same company, two years in the same field will suffice. Lenders like to see you have some stability with your job situation so you’ll be able to keep up with your mortgage payments.
Plans to plant roots
If you’re looking to stay in the area for 5 years or more then you might be ready to own a home. However, if you’re unsure of your residency status due to life events or career changes, you should put off buying a home until you’re certain you’ll be staying for a while.
If you’re seriously considering buying a home you need to make sure you know your current credit score and whether or not you need to work on improving it. If you have a lower credit score you may still qualify for a loan but it will be much easier if your credit score is higher.
Careful consideration necessary
Although there are a lot of great advantages paired with owning a home, if you’re not truly ready to put in the time and money you’ll feel more stressed than excited which is not how owning a home should be. Carefully consider whether you have the traits of a first-time homebuyer and identify whether you’re ready to commit to this life-altering decision.