Are You Ready to Buy Your First Home?

Have you been thinking about buying your own home, but you aren't quite sure it’s the right time? Buying a home is one of the biggest purchases you will ever make. To help you figure out if you are ready, here are some factors to take into consideration when you are thinking about buying your first home.

You are financially stable

Purchasing a home is a big investment. Proper financing is perhaps the biggest testament to your home-buying 

readiness. There are a couple of important things to consider:

• You have a sizeable down-payment you can put on your house (around 15-20 percent of the property’s value)
• You can comfortably make your monthly mortgage payments (should be less than or equal to about 25-30 percent of your monthly income)
• You have a good credit rating and your debts are under control • You have a reliable source of income

You are ready to make a long-term commitment

Buying a home is a long-term commitment. If you still want to travel the country, or even the world, or your job requires you to move often, now might not be the right time. 

• You truly love where you live and it feels like home
• You are ready to settle down and make memories in one place – your place
• If you want to recover your investment on your home, it usually takes around three to five years
• You understand that a home is an ongoing commitment from the upkeep to repairs to remodels and anything in between

You are sick of renting

Renting means that your money is going straight into your landlord’s pocket. It means that you cannot make adjustments or improvements to your home, and if you do get permission to make changes, it really only benefits your landlord.

• You genuinely, and without a doubt, want to own your own home
• You are ready to be your own landlord and take on all the responsibilities that come with owning your own home
• You want to make changes as you see fit to improve your home or simply to make it more “you”

You understand the process of looking for a home

What style of home are you looking for? 

In what area are you looking to purchase? 

What do you need in a home?

Understanding what you want before you look for your new home is important.

• You know what you want and what you do not want
• You understand the market and adjust your plan-of-action accordingly
• You understand that sometimes you have to temper your expectations
• You understand that sometimes your budget dictates what you can afford and you must search accordingly
• You understand that there is a difference between your wants and your needs
• You understand that the process of finding the right home takes time, and therefore requires some patience