How to Know When You’re Ready to Buy a House
If you find yourself debating whether you should finally take the plunge and you’re ready to buy a house or sign another year-long lease on your rental, then this blog post is for you. Renting has many advantages depending on your stage in life, commitments, and overall lifestyle.
The same can be said for being a homeowner.
So Let’s Play a Game.
If you find yourself saying “That’s totally me!” after each section, then you just might be ready to buy a house.
1) Does the thought of staying in this town sound appealing to you?
The answer should be a resounding “YES!” If you’re thinking of buying a home in an area, then you shouldn’t have any thoughts about moving within the next three to five years. As this Forbes article points out, selling your home too close to when you purchased it could result in you losing some serious money.
This usually ties into family life, whether you currently have children or they’re on the way, or if you’re considering moving closer to extended family any time soon. Wanting to buy a home means that you want to find a nice, safe neighborhood to raise your children in, a good school system nearby, and a town or city that offers activities for them to be a part of.
2) You have a steady job.
Having a steady job for at least two years means two things: 1) you’re probably in a good position financially, and 2) you will probably have more success with securing a loan. A steady job is also a good indication that you’ll be around for a while. That is, unless you’re hoping for a higher position in your company and means you have to move soon (in which case, hold off on the house buying).
3) You can pay for the down payment.
A solid financial foundation is incredibly important when beginning the home-buying process. Being able to pay for the entire down payment is truly the best option for the homebuyer. (It prevents you from having to pay for a PMI mortgage.) Depending on both the mortgage you get as well as the house, down payments usually range from 3-20% of the purchase price.
4) You have a credit score, and it’s good.
Although stellar credit scores aren’t a requirement for being able to purchase a house, they are still an aspect of your life that will be examined when you apply for a loan. Investors (i.e. banks) are looking for people who have a solid record of paying what’s owed on time.
5) You can afford the mortgage.
This point is rather self-explanatory. You’re not ready to buy a home if you won’t be able to pay for the mortgage. (Click here to read more about some of the most common types of mortgages.)
6) You can afford to pay for repairs or whatever else might pop up.
Unlike with renting, there’s no landlord to contact when something needs fixing. If your roof gets damaged, you’ll need to fork over the cash to get it repaired.
Time to Make a Move
Now that you’ve played “Am I Really Ready to Buy a House?” and you said “YES!” to all the points, then it’s time to contact a realtor who’s incredibly familiar with the greater Savannah area and can help you find the perfect home for you and your family. If you’re interested in open houses in the greater Savannah area. We’d love to talk with you because no one knows Savannah better than us.