There are many reasons why someone would consider switching from renting a home to owning one of their own. Maybe you are tired of earning equity and better credit scores for your landlord. Maybe you would like to live without someone else’s restrictions or rules as to what you can do with your home. Though these are some good reasons for owning your own home it is not a decision to step into lightly.
Here are some Signs that You are Ready to Own Your Own Home:
You Have a History of Responsibility
If you are struggling to pay rent each month, are behind on bills, or living off of the cheapest necessities to get by. You may not be quite ready for a home yet. However if your credit rate is stellar, you know your landlord would give you a stellar renter referral, and you have responsibly paid bills on time and even put money aside into savings instead of spending it, homeownership just might be a good idea.
More Control and Responsibility Sounds Exciting
In most cases, renters have very little ability to make changes to the property they are living in. Maybe you would like the freedom to change your home to be exactly what you want. While homeownership comes with the freedom to make these choices it also comes with the bills and responsibility of permitting. If you see these costs as a small price to pay for the excitement of being the one to call the shots, you are ready to be a homeowner.
Related: Renters are feeling better about buying right now
Your Interests are Becoming Home Driven
Sometimes signs that you’re ready to own a home are as subtle as a shift in your mindset. One day you are carefree don’t tie me down apartment hopper and the next you are a nesting DIY home improvement enthusiast. Instead of keeping up with the Joneses on the latest tech and clothing trends, you are into finding quality furniture that will last several years. Instead of binge-watching the latest hit show, you are more interested in home improvement channels.
You Have a Solid Income
Having rock-solid finances is one of the biggest signs you are ready to own your own home. Before you apply for a mortgage (which should be done before looking for homes) you will need to prove at least six months of work history at your current job. Some banks may require longer. This job should pay enough to comfortably cover the cost of the monthly mortgage payment, utility costs, and other necessities like groceries and gas. If you are buying on your own or with someone else the total monthly payment of the home should not be more than 25 to 35 percent of the total income of the owners.
Related: Questions to Ask When Buying a Condo or Townhouse
Your Down Payment is Ready to Go
While there are a few zero down mortgage programs out there they are increasingly hard to qualify for. A significant down payment in a bank account ready to go communicates to a lender you are ready to do this. You are taking this seriously and you are ready to put your money where your mouth is. A down payment of 10 to 15 percent is a good amount.
You Plan to Stay Put for a While
Buying a home is a huge purchase that will pay off and even begin to make you money, in the long run. If you are hoping to only live in a place for about one or two years this could end up costing you money instead. Make sure the place you are hoping to live is a place you see yourself being in for at least the next five years and hopefully even longer.
Are you ready to buy a home in Lewiston New York? Please contact me any time and I would love to help you find the perfect home.
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4 Tips for Buying an Older Home
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