30 Sep Are You Ready for Your First Home?
It’s an exciting feeling when you decide that the time is “right” to buy your first home. It’s one of those milestones that marks a new phase in your life, much like your first day of school and your first job.
But it’s important to remember that while purchasing a home is exciting, it’s also probably one of the biggest financial decisions you’ll ever make. You’ll have to be responsible, sensible and diligent while navigating the housing market.
There are all sorts of reasons a person would consider buying a home, like marriage, a change in family size, relocation or just simply being tired of paying rent. However, there are some factors we believe you should feel confident about before plunging into the home-buying experience:
- Make sure you’re financially ready. This may seem obvious, but there are certain costs that you might not have considered: new furniture, moving expenses, closing costs and a down payment. You’ll want to go into the process confident that you have the necessary cash.
- Know your credit score. Even if you have enough cash for all the upfront costs of purchasing a home, lenders will examine your credit score closely to determine whether or not you’ll qualify for a mortgage. That’s why it’s very important to make sure you have good credit. Here’s a list of ways you can increase your credit score if you think it might be a problem.
- Be ready to settle down. According to most finance experts, you won’t be able to regain the money lost during the process of buying and selling a house unless you plan to stay there for at least five years. If you’re still expecting to move around within the next few years, then you may want to stick to renting.
If nothing in the above checklist worries you, congratulations! It’s most likely the right time for you to start looking for that perfect new place. To prepare yourself even more, continue keeping up with our blog, which is chock-full of tips for first time homebuyers!