Start a new chapter of your life by making a leap from renting to owning a house. Just know that it’s big decision to make, and with the freedom of owning a house comes certain responsibilities.
In exchange for a security and privacy, you have to be able to pay for all the house maintenance, the taxes and property insurance. So before you actually buy your own home, you first have to make sure that you are ready emotionally, physically and financially.
These are the signs you are ready to buy your own house:
- You have an upfront money ready
If you are not in position to save for a down payment, you are probably not in the position to buy your own home. You need to have the upfront money needed that includes the down payment, the closing/processing cost and money you will allot for an emergency fund. There are many additional cost of homeownership that some buyers tend to overlook, so in buying a house you need to prepare for hidden cost along the way.
When you buy, there are cost of securing the loan, closing on the sale and moving. Adding to the list of cost are the miscellaneous items that you may need in the new house like fresh paint, new curtains, etc. As you can see, you don’t want to drain your savings on just down payment.
- You have good credit rating
A person’s credit score is an important indication of how creditworthy he is. If you have no problems like late payments or having skipped out on a couple of bills you have a good credit history. You need to know how to get approved for a mortgage. Good credit rating means that it would be easy for you to get a mortgage at a low interest rate. A bad credit score indicates some sorts of financial problem and will not help you get a good mortgage deal.
- You know what exactly you are looking for in a house
Weather it is a single-family home, a duplex, a townhouse or a condominium, it should be something that fits you or your needs. You have to set your priorities in picking out what to buy, so make a checklist before you browse homes for sale hendersonville tn or a house for sale in orlando.
- You are ready to stick around
You need to be sure that you want to stay in the area for the next three to five years or else, you should just rent an apartment or buy one in a city you’re most likely to retire in the future. See it this way – when you buy a house and have to sell the next year, you are likely to lose money because appreciation won’t catch up to the cost and expenses incurred on the purchase during that short period of time.
A house is too expensive for you to leisurely buy. Think about it carefully before you make the final decision.