Are you someone who sees a little piece of paradise every time you look at your computer monitor on the internet? Have you ever dreamt of a future where you are not writing away 30 percent of your earnings to your landlord every month? Do you still dream of buying a home of your own where you and your family can be happy? If so, then it is time to take those dreams seriously and make them a reality.
Rents continue to rise in many places across the country, which is one of the biggest reasons any renter would want to purchase a home. In many neighborhoods and real estate markets, the cost of renting is even higher than the average monthly mortgage of a single-family home. Suppose you already feel trapped with the uncertainty of your rent payments. In that case, you might be better off purchasing a house where your monthly mortgage is consistent, and you’ll be gradually building equity into your biggest asset.
You Have Enough In The Bank
According to the 2019 NAR Profile of Home Buyers and Sellers, the hardest step in the home-buying process is putting aside money for a down payment. Even though many young adults have already finished paying off their student loans, credit card debt and other loans, they are still unable to save up enough money to make their dream of homeownership come true.
Stability In Employment
Employment plays a huge role in the mortgage application process, as lenders and mortgage companies take into account your employment history before approving you for a loan. Typically, they would want to see that you stayed at least two years working for the same company or in a similar field, and that you will likely continue having the funds to pay your debt.
You’re ready to stay in the neighborhood
It’s quite subjective, but your preferred location and capability to settle in one place are also significant considerations when deciding to purchase your first home. If you anticipate moving in a few years, are able to live in a particular area for a year or two, or don’t imagine yourself being tied down in one location, buying is likely the best option since you can leave whenever you want.
You’re ready to be responsible for your home
29% of all home buyers cited as their main reason for purchasing to own a home. Your readiness to become a homeowner matter above anything else. Although you’ll be in charge of all repairs, maintenance, and upkeep costs, if you’re not comfortable doing these tasks and would rather leave the problems to a landlord, you may be better off renting for an extended amount of time.