Are you thinking about buying your first property?
This is likely to be the biggest purchase you have ever made, and by a considerable amount. This is why it is of huge importance that you consider this decision carefully. A lot of people today feel pressured into buying a property because it is something they assume they need to do by a certain age. However, rather than comparing yourself to others and buying a property because your friends have done so, you need to make sure it is right for you. With that being said, read on to discover some of the key signs that you are indeed ready to buy your first home.
You have a good credit rating – There is only one place to begin, and this is with your credit score. Luckily, you can easily download your credit report free of charge today. In most cases, the free report is a very simplistic one with few details. However, it does give you your score, so start off by downloading this. If you have a good credit score, you can proceed with your property search. On the flip side, if you have a bad credit score, you may want to think twice before diving into the home property search. It is a good idea to pay for a more substantial credit report so you can figure out why your rating is bad. There are many different factors that can have a negative influence on your credit rating. This not only includes whether you have paid off your debts on time, but it also includes how much money you have borrowed in total, how much of your available credit you are using, how many credit applications you have made within the past six months, and the average age of your credit accounts. By downloading the full report, you will know exactly what you need to work on in order to boost your credit rating. It is a good idea to work on this first because you will find it easier to secure a mortgage and you will be presented with much better rates if you have a good credit rating.
You have a steady job – The second sign that you are ready to purchase a property is if you have a steady job. There are a number of different reasons why this is important when it comes to determining whether or not you are ready to sign on the dotted line. Firstly, buying a property is something that is going to require consistent monthly mortgage repayments on your behalf. If your income was to stop, you would find yourself in a position you really do not want to be in – owing money, yet having no money coming in. This is why it is of paramount importance that you have a secure job. Not only this, but you are going to struggle to get a mortgage if you have recently moved jobs. In addition to this, if you are self-employed, securing a mortgage becomes even more difficult. You will be expected to prove that you have made a consistent income for the past couple of years. You can do this using your tax returns.
You know what you want – You should never start house hunting until you know what you want. You need to make sure you have a definitive list of all of the different things you need and are looking for when house hunting. If you don’t, it is very likely that you are going to make purchasing decisions based on your emotions rather than your head. Emotional decisions are usually the worst sort of decisions, and they can result in you spending a lot of money on a house that is not actually suitable for your needs.
You have been pre-accepted for a mortgage – Before you start looking at the different homes that are on the market, you need to make sure that you are going to be approved for a mortgage. There are many different options you can look into today, as the financial services sector is more diverse than ever before. You can for a new loan or you can refinance home loan, for instance. Not only do you need to consider the different types of loans that are available to you but you also need to look at the sort of rates you are going to be offered too. You need to make sure that the deal is right for you and fits into your current financial situation.
You have an emergency fund – In addition to the points that have already been mentioned, another sign that you are ready to buy a house is if you have an emergency fund. A lot of people make the mistake of assuming the only thing they need to do in terms of finances is save for a deposit and make sure they can afford the monthly repayments. However, if you spend all of your cash on the deposit and leave yourself empty, you are going to be in a very difficult position. Being a homeowner comes with responsibilities. If something breaks, you need to fix it. Let’s say your boiler breaks down in the middle of winter. If you don’t have the funds to replace it, you are going to be living in a very cold house and enjoying freezing cold showers every morning. Sounds like hell, right? YIKES! This is why you need to make sure you save up an emergency fund so that you can respond to any issues like this.
You are ready to commit to the area in question – When you buy a property, you need to remember that you are investing in more than bricks and mortar. You are investing in your future and you are committing to an area. Therefore, when deciding whether or not you are ready to buy a house, you really need to press fast forward and think about where you see yourself within the next five years. Does the thought of still living in your current area make you feel sick to the stomach? Or, do you feel happy and content? Remember, when you are buying a property, you are putting down roots for the future. You need to make sure that you are 100 per cent ready for this.
As you can see, there are a number of different signs that indicate that you are indeed ready to buy your first home. If you feel the signs that have been discussed apply to your current situation, you can buy a property with much greater confidence, knowing that you are ready to do so. However, if you feel that reading this blog post has left you feeling like you are not ready to buy a property, don’t panic. There is no right or wrong time to buy a property. It is all about what is right for you and the person you are purchasing a home with (if you are indeed buying with someone else). You can go your whole life without buying a home if you want to – there is no rule that states you have to be a property owner!
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