The step of moving from a renter to a homeowner is a step that many find to be a big, daunting task. It is a big life change that can be intimidating to go through alone. One of the biggest fear among first time home buyers is the fear of it being the right time in their life to purchase a house. There is no Whether you think the time is right or not, here are a few indicators to let you know you are ready to buy a home
The pressure of this big financial commitment is understandable but it should not hold you back from taking that next leap. A little over 63 percent of Americans own their home. In the process of buying a home, you will need to show lenders that you have the ability to actually save. If you can afford 10 percent of the home, the down payment, that is a good indication you are entering a comfortable spot to buy a home. Ideally, putting down 20 percent of the home’s worth will be better in the long run because you will have to pay less interest on your mortgage. Any down payment under 20 percent pushes you to get a loan from a private mortgage company.
In addition to the actual purchase of a home, many unexpected costs of bills, repairs and general maintenance pop up during your time living in a home. Taxes and insurance also factor that many tend to overlook. Even paying your homeowner association fees is something much first time home buyer do not even think about. Awareness of these unexpected costs will definitely help alleviate financial stress in the future.
Before taking that step in financing a home, plan ahead and see what your future holds. Is this the area you would like to stay in for the next few years? Even in terms of where your career will take you in next coming years. A good rule of thumb is you do not plan on staying in the area for a minimum of three years, that you make want to rethink purchasing a home at this point in time.
There is no right or wrong answer in the home buying process, it is dependant on context. You must factor in your income, savings, location, market, and where you would like to see yourself in the future. Once you begin to feel comfortable with these ideas, begin to take the steps in looking for your first home. Just because it is a new process, does not mean it should be a scary or stressful one.