New Home For The New Year? Are You Ready For It?

Buying your very first home is indeed very fulfilling. However, this decision is too big and expensive that you need to think very hard before you put the green light on. There are many factors to consider first and you need to be very sure that you are 100% ready.

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In this article, we will enumerate factors that will help you determine if you’re ready to buy your very first home.

  1. Do you have a stable job or source of income – it is important to be practical. How are you going to pay for the mortgage or even apply for one if you do not have a stable job? It is recommendable that you are in the company for at least 2 years to say that the position is stable. You do not want to lose your job while paying off your mortgage. It would be too burdensome most especially if you can’t find a new job quickly. So it is important that your job or your source of income is stable.
  2. Do you have money for the down payment – you need to have money for the down payment. Usually, the bank or the loan company requires to pay at least 20 percent so make sure you have this money. Also, do not make the mistake of draining out all your savings for the down payment. The money for the down payment should be separate from your emergency fund.
  3. Do you have enough savings – speaking of emergency fund, you should have a generous amount of savings that you could use in case of emergency. Like for example, you lost your job or you’re short on your monthly budget because of unexpected expenses. Having a savings account will make you feel more secured.
  4. Can you squeeze in mortgage payment in your monthly budget – you also need to decide what type of mortgage to get. It is a lot easier to manage a fixed rate home loan since you know the exact amount to pay every month thus you can plot it in your monthly budget. But before that, you should assess your current monthly budget plan and see if you can squeeze in mortgage payment in your expenses and still live comfortably.
  5. Do you have existing loan – lastly, it would be best if you do not have any other existing loan – car loan, personal loan, credit card debts that you are paying every month. It can be difficult to manage more than one loan. So if you have existing loans, it is advisable that you finish it off first before you get a home loan.

It is recommendable to ask and answer those questions to yourself to know if you’re ready to buy a house.

Buying a house requires right timing. You should not make a rash decision just because you are pressured that a lot of your friends are already buying a house or because you are feeling tired of renting an apartment or someone offered you a loan and so on. It is a lot sweeter to buy a house when everything is right.

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