It’s one of the most confusing phases of your life. You want to buy a home, but you’re not sure if you’re already ready (no pun intended). Deciding on it becomes more complicated when certain issues arise — your family pressuring you, your savings running out, and your credit card debts becoming insurmountable.
It’s okay to be confused, especially since a home is a big purchase. There will always be some ways to know if you’re ready for property acquisition. Here are some questions you need to ask yourself.
Do I have enough money?
Real estate properties are more expensive than they used to be. Realizing this, money is certainly an important aspect to factor in. Look at your finances first and balance your personal sheet. The rule is if you have more liabilities than assets, it’s better to delay the purchase. If you believe you have enough savings, focus on funding your down payment. If you have a good credit record, CityCreekMortgage.com suggests going with mortgage companies that will help you out.
What type of house?
The type of house you should buy will depend on your budget. This is an ideal setup if you have a limited budget (rather than basing your budget on the type of home you want). Consider the following factors: the size of the family, the proximity of the house to major establishment, safety, and resale value.
When will I be moving in the next N Years?
Apply the 5-year rule. If you’re a backpacker or a business traveler who moves around a lot, it’s wise to delay home buying for a while and settle for renting. If you won’t be moving around a lot in the next five years, consider buying that home. Remember, your home will still incur costs even if you leave it vacant.
These are only some of the questions you need to ask yourself to know if you’re ready for that big purchase. If you still have doubts, don’t hesitate to seek the advice of a real estate consultant.