A lot of people are renters for decades without ever realizing they could be homeowners. The idea of buying your first home can be overwhelming, and the costs downright frightening, which is why so many people don’t even consider they could be capable of it.
However, the truth is that you may be more ready to own a home than you think. Put your fears aside and take a look at some of the biggest telltale signs that you’re ready to buy your first home.
You Can Fit a Mortgage Into Your Budget
Take a look around at mortgage costs for the type of property that you’d be interested in. You may be surprised to find that some mortgages are only slightly higher than your rent, and you’re actually gaining equity at the same time!
Using a loan calculator is a simple way to see how much of a mortgage you’d be looking at and whether you could afford it.
You’ve Got Some Money In Savings
Although most people need a loan to be able to pay for a house, you’ll still need to put down some money initially. The higher the downpayment, the better that your loan rates will be.
Don’t make the mistake of thinking that you have to put down as much as 20% of the price of a home, however! Some people pay as little as 3% of the total cost as a downpayment. If you’ve put some money in savings over the years, then you may be surprised to find that it’s plenty to be a homeowner!
You Have a Favorable Credit Score
If you have a credit score over 700, then you have a considerably good chance of qualifying for a loan with a reasonable down payment. If you’ve always paid on time and don’t have a significant amount of credit taken out of your total allowance, then this is a good sign that you’re ready to buy a home!
You Plan On Staying Where You Are
Some people may not be ready to put down roots any time soon, and that’s perfectly fine. However, if you’re the type of person that’s planning on settling down where you live currently, then you are probably ready to buy a house.
Inflatino and home prices are going up, so buying a house where you live can be a fantastic investment in your future.
You’re Planning on Expanding Your Family
Owning a home when you have children is one of the most logical routes. Renting is only draining your bank account and giving you no return on your investment. If you have kids or are anticipating kids in the future, then it’s a huge incentive for buying your first home and cutting your costs.