5 Signs You're Ready to Purchase Your First Home
Posted by Eric Skates on
At some point between the age of eighteen and thirty, everyone will consider purchasing a home. Not everyone will follow through on the idea, however, because - usually - people simply don't know when the right time to buy a home is. The big question is always "am I ready?"
The truth is that there is rarely a perfect time to purchase a home. There are, however, some generally good signs you're ready to make the big leap. Here we discuss five of those.
1: You Have Kids - Or Are Planning to Have Them Soon
Whether you already have kids or are planning to expand your family soon, it is much easier and more secure to raise a family in your own home. This ensures that you won't need to uproot your children every half-decade or so for a new rental - and almost guarantees they stay in the same school district for their whole school careers.
2: You've Started Building Credit
If you've put the thought into building credit you're probably ready to at least start thinking about purchasing your first home. Start by exploring your options based on how much credit you've built and what your score is. Building credit takes time but is well worth the effort. If you haven't already, consider a secured credit card or small personal loan to get started. Remember to always make payments on time and keep your oldest line of credit open for a longer history.
3: The Idea of Renting Doesn't Appeal To You
When you first strike out on your home the idea of renting is exciting. Not because you're lining someone else's pocket each month, but because you're finally on your own as an adult, in your own place.
Eventually, the idea of renting will lose it's appeal because you'll realize it has multiple drawbacks. First and foremost, it lacks the freedom to do as you please in your home. Second, it is far from cost-efficient. If you pay a grand in rent each month, in one to two years you'd have had a considerable down payment on a home. Already come to these conclusions on your own? You're probably ready to buy your first home.
4: You Have At Least Some Savings
Although much more cost efficient in the long term, purchasing a home requires a large upfront investment (in most cases). Even the best loans typically require 3% down on a home. At $250K total purchasing price, this amounts to $7.5K. Most loans, however, require about 20%. In this same scenario that would be $20K. There are loans, programs, and grants that can help with this down payment but you'll need to have at least a couple thousand in your savings account.
5: You Know Where You Want To Live For The Next 10+ Years
This may be the biggest indicator that you're ready to purchase a home. If you can honestly say you know where you would like to live for at least the next ten years, you're already on the path to owning your first home.
Unlike renting, purchasing a house requires a long-term dedication that can range between ten and thirty years minimum. The exact amount of time will depend upon the mortgage you take out. Yes, it's possible to flip your house and pay off the mortgage or transfer it, but that can take years to accomplish alone.
If all or nearly all of the above signs apply to you then you're probably ready to purchase a home. The next step is to reach out to us at Equity Prime Mortgage and start the prequalification process or give us a call toll-free at (877) 255-3554.