How Do I Know if I’m Ready to Buy a Home?

Buying your first home is certainly one of the defining moments in your life. But how do you know if you’re ready to take that step? Here are some things that will help you determine if you’re ready to buy a home or if you need to get some things in order first.

1. Do you have a clear idea of what you need and want for your own home?

The decision to buy a home is not something to be taken lightly. It is a long-term commitment, and you have to be certain you are carefully and confidently making the right decision.

Before choosing a property to buy, you must already have a clear idea of the attributes you want and need. Consider your non-negotiables as well as the compromises you can afford to make. Choose your ideal location. What type of property are you looking into? How many bedrooms? Do you need a parking space? Write down your needs and wants as a guideline when deciding on the property to buy.

2. Are you ready to settle down in one place?

As a general rule, if there is a chance that you might move in the next five years, it may be better to rent than buy a property. Of course, there is the option of selling when your needs change, but keep in mind that selling may entail additional expenses and require you to invest time and effort as well.

Take a look at your personal situation. Can you imagine yourself living in that same house in five years’ time? Do you foresee any significant change that might happen in the next few years — like getting married, or having a kid, or changing careers, or getting promoted?

3. Is your financial house in order?

Money is the most important factor when deciding if you’re ready to take the step into home ownership. Take time to sit down and study your financial situation to see if it’s realistic for you to buy a house at this time. Think beyond your current financial circumstances and consider your status in the foreseeable future.

Do you have a steady income? Do you have enough savings for down payment? Are you financially prepared to take care of move-in fees, utility installation fees, and maybe some renovation and furnishing costs?

4. Can you really afford the payment?

Your financial responsibilities in homeownership do not end in paying the down payment and monthly mortgage. Think of the taxes, insurance fees, homeowner association dues, water, garbage disposal and other utility expenses. As a renter, your landlord may have taken care of those on your behalf, but it is all yours when you take that leap into homeownership.

Also, it is your responsibility to take care of maintenance issues. Are you handy enough to be able to fix a leak or clogged toilet? Otherwise, do you have the resources to pay someone to take care of repairs?

5. Are you responsible?

Buying your own home may be a great sign of independence, but are you ready to take on the great responsibility? You must be responsible enough to conduct due diligence, meaning you learn everything you can about the property you are buying. Do your research and confirm that the property is best for you. Verify that you are dealing with trustworthy real estate professionals. Prepare and comply with all the requirements. As soon as you have completed the purchase, you are responsible for making sure the property is well maintained and the mortgage, taxes and other fees are paid on time.

Buying a home can be an overwhelming process, but with apt preparation, it can be easily and smoothly completed.