People dream of owning a home that reflects who they are. However, it is a serious commitment, particularly when it comes to financing. Anyone can feel they’re ready to buy but to be extremely sure about it, have a look at the signs below.
- You earn well enough to have substantial savings.
- You have very little debt
- You don’t flinch from responsibilities
- You know whom to call
- You’re not in a hurry to move
- Your can stay afloat despite the added expense
Buying a home is a much more of a commitment than renting a place or buying a car. You’re ready to become a homeowner if your resources – and the discipline with you candle your money – dictate it. That typically means having a job you’ve held for a number of years and enough savings to make the 20% downpayment on your desired home, plus additional expenses like closing costs and legal fees.
You don’t need a spotless record to score favorable interest rates or be a good candidate for a house loan. But a great credit score translates to reliability and less risk in the eyes of mortgage lenders and banks. Even if you’re still paying off your student loan, show that you’re making those monthly payments on time. You’re not only chipping away at your debt but also avoiding expensive private mortgage insurance.
Owning a home serves up a thick slice of responsibility. Mortgage payments, property taxes, utility bills, and home repairs will regularly keep you preoccupied. If you haven’t broken a sweat after reading about all the physical, financial, and legal costs of maintaining a home, you’re ready for homeownership.
Part of being a successful homeowner is familiarizing yourself with the process of buying real estate. You don’t need to know the ins and outs of the industry, but knowing that you need a mortgage lender, an agent, an attorney, and a home inspector gets you closer to buying the right home.
Far-flung places don’t pull as much as they used to, and you don’t mind dedicating weekends to exploring the neighborhood. In fact, you like having a routine and a favorite cafe or restaurant nearby where you’re on a first-name basis with the staff. If you can set your mind on staying for around three to five years in a home, you’ll enjoy seeing the value of your property appreciate.
Buying a home than maintaining it will take up a huge chunk of your income. Lifestyle adjustments will eventually have to be made. But you shouldn’t have to alter your life too drastically because you’ve become“house poor,” or someone who spends a good chunk of their income on their mortgage and household expenses. Financial experts agree that you should spend no more than 25% of your net income or take-home pay on your mortgage payment. Add to that your maintenance costs, utilities, home association fees, and the cost of furnishing your home. This gives you a clear idea of how much home you can actually afford. Adjust accordingly so you can spend your days appreciating what you have instead of being resentful at the drastic lifestyle changes you needed to make because of your house.
Did you meet most of or all the criteria for a ready homebuyer? Allow us to lend our real estate expertise to your first home buying experience in South Texas. Give Desert Flower Realty Ranch and Residential Sales a call at 361.449.2051 or email desertflowerrealty(at)desertflowerrealty(dotted)com to get started.