Should you buy a home? If yes, when? If not, why? There are so many questions to answer before deciding whether you should buy a home or not. And many of these questions can only be answered by you.
To help you decide, there are some signs that you should know. These signs could tell you that you are ready to finally buy yourself a home. Without further ado, here are some signs that say you should buy a home.
You have a decent credit score
I know that not everyone cares enough about their scores, But for some that do, their credit scores could tell a lot of things about them. One of the most important things is their credit score is a sign of whether they’re responsible with their money or not.
If you have a decent to good credit score, the better deal you can get on your mortgage loan and the easier and quicker it will be to get approved. Many lenders think a decent to good credit score is a sign of whether a person will likely repay their debts. This way, lenders will give you a better rate because they feel they don’t have to worry about default. So if you haven’t already, it is a good time to start improving your credit score.
A healthy savings account
Having a healthy savings account is everything when it comes to buying a home. You’ll have to spend a lot of money on the down payment, and even more for the house itself. Also, there are closing costs, maintenance costs, and emergency funds to worry about.
Closing costs are related to lender fees, taxes, and legal fees, and can amount to up to 5% of the total loan. If you decide to use a home inspection, expect to find several new maintenance items that you need to take care of sooner or later.
And as for emergency funds, everyone needs them. Emergency funds are money that you can use whenever things get really bad. So you will always have something to fall on when things get sour. And the money can be the difference between getting to keep your house or letting it go.
Your savings account is also a mirror of your lifestyle. If your lifestyle can afford a new home, then it will reflect on your savings account.
You have career stability
Buying a home is a long-term investment. So as long as you can keep your investment for the long term, then it is a great idea to buy a home. And the key to this is having a stable career. A kind of career that you know will last longer and keep you going until retirement (if possible).
Take a deeper look at your current position and overall career trajectory. Especially after you move to a new home. Different locations can affect your career, so be careful. Even if you have a great job now, don’t think that it’s going to be enough. For a lot of people, having a great job is no more than a short-term solution.
If your job or career is unwanted in the new location or there aren’t enough jobs available, your career may need you to relocate to a new location. And if that happens, you will regret your 30-year mortgage plan.
Mortgage rates are low
Imagine you are shopping for new clothes, and you see clothes that you want are on sale. You wouldn’t pass up this chance, would you? Same with mortgages, the prices can go up or down depending on the market. And when the rates are going low, then you shouldn’t pass up this window. One or two points off your mortgage loan rate can save a ton of money in the long term. Another thing, you know the mortgage rates are low when you think the rates are affordable now but when they go up again, you might not be able to afford them.
Buying a home is a big decision and for some people, it is the biggest decision they’re going to make in a long time. Therefore, you shouldn’t rush it. And by learning these signs, I believe you can make a better decision.