The question for most might not be “Do I want to own a home?” but instead, “Am I ready to own a home?” While you may feel unsure, there are a few important factors that can help you decide if you are ready to buy a home, and can help you feel more confident that you are on the right track to homeownership!
Saving
You are saving your money. While this may seem like an obvious sign, it’s one of the most important when making a big financial decision like buying a new home. If you are saving your money and have some set aside, then you are a step closer to saving for a down payment on a new home and being more financially secure to own.
Check out Lennar’s guide to saving for a down payment, so you can be one step closer to owning the home of your dreams.
Improving Credit Score
While you might not have a perfect credit score, that doesn’t mean that you aren’t ready to buy a new home. If you are constantly taking steps to improve your credit score, you will see the effects that it will have sooner than you may think. Simple things such as paying your bills on time and keeping your balances low, can help improve your credit score dramatically.
You can always find professionals to help you improve your credit score, and help you become one step closer to owning a new home. The Home Buyer Solutions Group, part of Universal American Mortgage Company, offers a financial education program and will work closely with you to help improve your finances and credit.
Long-term plan
You have a long-term plan. While you don’t necessarily need to have your whole future figured out to buy a home, you should have a general idea of where you would like live for a while, and a plan that you want to stick to. If you have a long-term plan, then you can feel more confident about your home buying decision knowing that you plan to stay in your new home for a long period of time.
Growing family/Need more space
Your family is growing, but your current apartment or home isn’t getting any bigger. While you can always renovate, decorate, and rearrange furniture, it’s not very likely you can make the home you’re living in now any bigger or help with the size of the space. Whether you have a growing family or you simply need more space to live, this is a good sign that you’re ready to move onto a bigger home to fit your lifestyle.
You know what you can afford
Knowing how much you can afford isn’t always a simple answer. It’s easy to over estimate on your budget, especially when you add on all of the items on your wish list. You might end up raising your budget more than you should without even realizing it. You have to consider and budget for additional expenses when buying a home beyond just the monthly mortgages.
Use an affordability or mortgage calculator that takes into consideration additional monthly bills and other debt you may be currently paying off such as student or auto loans.
If you know how much you can afford, and have done all the calculations, then you should consider yourself one step closer to buying a home! While a lot goes into the preparation of buying a home, it is well worth it to consider all of the factors with such a big financial decision. You won’t regret being prepared and confident when purchasing your new home!
Check out the resources below to help you on your home buying journey!
Understanding your credit score
