Buying a house is a huge financial commitment, so it’s understandable if the decision is stressful. Sure, the idea of not having to rent anymore is very appealing, but it can be difficult to know when it’s the right time.
Thankfully, there are some signs to look out for in everyday life that you’re ready to take the plunge and become a first-time homeowner. Keep reading to find out whether you should buy your first home right now.
Can You Afford It?
When it comes to deciding whether you should buy a house, one of the first things you’ll consider is your current financial status. We don’t need to tell you that buying a house is expensive and, without careful financial consideration, you won’t be able to.
You’ll need a steady income, but it’s also preferred by most lenders that you’ll have been with the same employer for three years or more. While it’s certainly possible to get a mortgage when you’re self-employed, it will be more difficult to find a lender.
There’s no point in even thinking about buying a property if you can’t afford the deposit. The minimum down payment is usually 5% of the total value of the house; however, the more you put down initially, the better your mortgage rate will be.
The first step in the house-buying process is ensuring you confirm a mortgage in principle (MIP). Having a MIP from a trusted broker like Trussle will give you peace of mind, by proving exactly how much you can afford to borrow. While it’s not a guarantee that you’ll be able to borrow from the lender, it’s at least an acknowledgement that you are in a good financial position to buy a property.
What Are Your Plans For The Future?
Your finances are undoubtedly of the utmost importance, but they’re not the only thing you should consider when you’re deciding to buy your first home. Consider the below questions and if you say ‘yes’ to all (or most) of them, you’re probably as ready as you’ll ever be.
Are You Sure About Location?
The biggest advantage of renting is that you can move to a new area at any time. Once you’ve bought your property, think of it as an anchor that will keep you in one location for the foreseeable future. Therefore, you need to be sure that you’re happy settling in one place.
Do You Want To Start A Family?
If you want to settle down and have children, buying a house is a definitely a great idea. It ensures stability, and you can make sure that you’re close to good schools and other amenities. In addition, if you already have a baby on the way, owning your own home means you can decorate as you like, without worrying about losing a rental deposit.
Are You Willing to Have Long-Term Debt?
On average, it takes 25 years to pay off a mortgage. Of course, at the end of this period, you’ll have full ownership of your property; however, you must be comfortable with the idea of having this debt in the meantime.
Overall, you shouldn’t be scared of the idea of becoming a homeowner; it will be one of the most rewarding things you’ll ever do. You should now have a better idea of whether now is the right time.