Wondering when are you ready to buy a house? It’s common to feel anxious about making a decision, and there’s a lot to weigh up. The age of first-time buyers in the US is up, and the average new homeowner is now 33 years old!
But few things compare to the joy of having your own pad! Becoming a homeowner gives you a new sense of independence, security for the future, and the opportunity to create a space that’s tailor-made for you. Forget white-walled rentals- it’s finally time to showcase your personality!
1. You’re Ready to Settle in One Place
One of the advantages of renting is that you can relocate quickly, so it’s easy to explore new areas. In contrast, owning a home allows you to feel settled in a city. It’s a base you can always come back to, providing you continue to pay your mortgage payments.
So when you’re getting ready to buy a house, think about whether you feel comfortable settling in one city. Living in one place has plenty of benefits, like getting to know your neighbors and supporting community activities. It also allows you to focus on other goals, such as progressing in your career or building a family.
2. You’re Financially Secure
A significant factor in deciding when to buy a house is your financial health. You’ll need enough money to cover the down payment on your mortgage, any refurbishments required, and your monthly repayments.
Suppose you’ve managed to save the bulk of your deposit already. In that case, you could top up your funds from other sources, like a cash out annuity policy, where you release money from your retirement savings early. If you’re wondering how to afford a house, it’s worth checking out.
3. You Have Good Credit
Thankfully, you no longer need to have a perfect credit score to be offered a mortgage. But it will still work in your favor. A healthy credit score of at least 640 will increase your chances of lenders accepting your application.
The repayment plan you are offered is also affected by your credit score, with banks typically rewarding the best scores with lower interest rates and better mortgage terms.
If you’ve missed no more than one credit repayment in the last year, you’re likely to have healthy credit, and if your score is at least 580, you may qualify for an FHA loan that only requires a 3.5% down payment.
When Are You Ready to Buy a House?
The bottom line? Buying a house is a big responsibility, and everyone feels ready at different times. There’s no right or wrong answer.
Try to resist the pressure to decide and focus on what’s right for you, based on your finances and life goals. If this post has helped you answer questions like “when are you ready to buy a house?” take a look at the rest of our blog for more finance and lifestyle tips.