You can find a lot of information on how to go from start to finish of purchasing a home. A lot of that may be very obvious as well. But some people might also be wondering when to know whether it is the right time to purchase a home. There are some simple boxes you should have checked before you decide that it’s time to purchase a home, along with learning more about the housing market in your area.
You Are Employed
A pretty clear factor in being ready to take this next step of owning a home is making sure you have a consistent source of income. If you are working and making good money, it is suggested that your monthly mortgage payment should not be more than 30% of your overall monthly salary.
Another box to check would be in your credit department. Consistent income along with a good credit score is going to make you look great on paper. Looking good on paper is going to help you out because it’s not always easy to look good on paper.
Don’t make any changes to your credit too close to acquiring a mortgage loan. Or attempting to get a mortgage loan. Ultimately, you may never really know what goes into the algorithms to decide if you are too much of a risk, but there are ways of removing doubt. Making inquiries to your credit can impact your score and therefore would not be the best score you could have while you are looking to apply for a loan.
You should have some sort of savings as well. You will need to be able to put a certain percentage down on a mortgage loan. Besides putting money down, you’ll most likely have other expenses. It’s best to be prepared for this.
The Right Timing
Most people generally don’t intentionally walk into purchasing a home when they aren’t ready, but sometimes it ends up just happening. You should consider what you have planned in other areas of your life before you purchase a home, and consider the timing most importantly.
If you are expecting a job promotion where you may have to travel, maybe wait until after everything is secured. There are a number of similar instances where the timing may not be right, and it is better to wait until you are in a more stable and secure position to buy.
We make choices based on avoiding other conflicts in our life when we should be focusing on how to handle those. Ultimately, you don’t want to end up having a mortgage because you had a rough couple of months. Make sure that you can accommodate this change.
Have a Timeline
Lastly, in the steps to buy a house, the more you plan the better. Besides planning your finances, you should create a timeline for when you think you’ll be able to complete tasks. This isn’t necessarily for how long you want it to take for the sale, but the timeline to show when the next step should be executed.
A great way to stay organized is to get yourself a binder so you can keep your paperwork, planner, and any other additional items pertaining to your home buying experience.
If you are financially, emotionally, and intellectually ready to purchase your new home, you are, in fact, ready to actually purchase your new home.
