Three Signs that You Are Indeed Ready to Buy a Home

It doesn’t matter whether you are buying your first home or your second home; there are several signs that might indicate that you are actually ready to purchase a house. When it comes to buying a house, there are several principles to live by.

Here are the three signs that you are indeed ready to buy a home.

1. Your Financial Situation

You have the money, and you have up to 20% to put down towards a fifteen-year fixed rate. This aspect indicates that you have the money in your bank or pocket that you can put down towards your home. Now, your mortgage shouldn’t be more than 25% of your take-home pay. So, you will not want to allow the bank to take you above 25% of your take-home pay because you will still need your financial peace throughout this entire home-buying process.

So, financial peace also means that you have at least three to six months in a fully-funded emergency fund. This way, if something does go wrong with your home within the first initial years, you will have some funds set aside that you can use to get your things fixed.

Also, you will need some extra money in your account to make some purchases, as you might need to make some renovations and purchase some furniture. Do not invest your money in expensive trending furniture. Rather, fish for some furniture at wholesale, such as IKEA.

Nonetheless, you get the point. The very first sign that you are indeed ready to buy a home is that you have the money for the down payment. You will also have to have money for your mortgage payment, and you have the money for an emergency fund and to pay for the renovation and furniture.

2. You Have an Amazing Realtor

Another sign that you are ready to buy a home is that you are ready to live in the area for a while. The area that you choose needs to be according to your liking as you will be staying there for many years – at least five years at the minimum.

You get the point – a home is a long-term investment where five years is the bare minimum.  Also, you will have to find the best realtor in the world. For instance, if you would love to get a house in San Diego, you will want to check out the best realtor san diego, and eliminate much of the stress that is an essential part of buying a home.

The best realtor will not only save you headaches but also your time and money. A great realtor might also help you sell your last house and be your ultimate guide throughout the entire home-buying process.

You will want to do your research and get a professional realtor by your side – someone who knows their job and someone who can make you money and save you money.

3. Stable Employment

If you just got a job, you changed industries, or you have never had the same job for very long, it might be difficult for you to get financing. So, you will want to ensure that you have stable employment for the last two years.

Now, there can be some gaps or nuances in there – so it doesn’t need to be exactly two years, but, technically speaking, you will want to be in the same line of work for two years. If you have that consistency with employment, then you are good to buy a home.

The same rule applies when you are self-employed and change to being an employee. If you transition during this period, this might create some financial issues as well. You will want to ensure that whatever it is that you are doing, you have some consistency within that employment – whether it be at the same job or the same line of work – whatever it is, you need that consistency.

Once you have these things in order, then you are in the perfect position to talk to a mortgage lender and talk to a real estate agent. If you don’t have these aspects in order, then maybe you have a conversation with a lender upfront and not with the idea of buying a home but with the idea of what you need to do to put yourself in a position to buy a home.

The Takeaway

Once you know what you want, you will want to talk to a mortgage advisor to get the pre-approval so you feel confident that you are indeed able to purchase a home or start shopping for homes and see that your best options are in the market.

Make sure to check all the numbers upfront, such as the loan options and whether you qualify for the maximum price or not. You will want to get a clear perspective of your interest rate, the monthly payment, and all potential estimates on taxes, insurance, and closing costs.