Homeownership is a big step in anyone’s life. Buying your first home can certainly be exciting, but it can also feel a little overwhelming. It’s only natural to wonder if you’re really ready for all the responsibilities that homeownership entails.
Of course, there’s no hard and fast rule here, and it can look different for different people. With that said, there are certainly some telltale signs that suggest, yes, you’re probably in a good position to think seriously about buying a place.
We’re going to share some of those telltale signs below—but first, a quick reminder that the process of selling a house can be just as daunting as buying a house. That’s why we provide free, independent house selling tips in the SOLD.com report. Get yours today and find out the best way to get your listing sold!
And now… back to buyers!
How to Tell When You’re Ready to Buy a House
Imagine this scenario: You’ve paid off the last of your student loan debt. Your credit card balance is down to $0. You even own your car, free and clear, with no more monthly payments to be made.
When you reach the point where you’re living debt-free, that often means you have a pretty good credit score—meaning you can probably get a good loan! And, it means you have the cash flow to handle a mortgage.
Additionally, it proves that you’re a financially disciplined person… more than up to the task of homeownership.
You have a steady job.
If you’ve been working for the same employer for two or three years, rising through the ranks, and you really see a future for yourself at the company… that’s another sign of financial stability. It also suggests that maybe you’ve found a place where you’d want to lay down some roots.
In other words: It shows that maybe you’re ready to buy a house of your own.
You have savings in the bank
Another way to tell that you have the kind of financial stability needed to pursue homeownership? You have some money in the bank.
Specifically, you have some savings you could use toward a down payment, which is typically about 20 percent of the total home purchase price.
And ideally, you’d also have an emergency fund tucked away for a rainy day—at least $1,000.
If this sounds like you, then you may be a good candidate for homeownership!
You and your family are settled.
If you think there’s a reasonably high chance that you could be relocating to a new city within the next three years, then we would honestly recommend against buying a house. It’s a hassle, and even if you have an easy time getting the place sold, you’re not guaranteed to recoup your investment.
But on the other hand, if you think you and your loved ones are going to stay put for three years or longer… well, that’s a good sign that you may be ready to purchase some new digs.
You have a high credit score.
We mentioned this earlier, but it’s worth underlining it here.
If you have a high credit score, that means you’ll probably be able to get a mortgage with favorable interest rates and reasonable monthly payments.
All that to say, you can probably get a house without going house poor, so long as you do the right calculations and choose your home wisely.
You know what you want.
Finally, if you and/or your partner have spent some time researching houses, enough to know what you want and how much you can afford… that suggests that maybe you’re ready for the next step. By working with a real estate agent, you can start exploring local properties and finding one that meets your needs, your goals, and your desires!
Get More House Buying and House Selling Tips
So are you ready for the process of buying a house? Use the above checklist to guide your self-inventory.
And as for the process of selling a house… we’ll once again recommend claiming your FREE report from SOLD.com. Get yours whenever you think you’re ready to sell.