Ok, it’s go time. Or is it? You’re ready to take the plunge. Or are you? You want a place to call your own, but when should you make it happen? Family and friends are pushing you to buy. You hear things like:
“It’s time for you to settle down.”
“You should buy so you can build equity, instead of throwing your money away on rent.”
“You’re ___ years old and still renting??”
Sound familiar? These social pressures are just as real today as they’ve ever been. Don’t let it get to you! Deep breath…deep breath. Buying your first house is a huge decision, and certainly not one to be taken lightly. While everyone’s in a different place financially, there are certainly some overall “boxes to check” to find out if the time is right for you to start house hunting. It’s a personal finances litmus test!
Presenting your ready to buy (or perhaps not yet) checklist:
Can you afford to buy?
[wp-svg-icons icon=”checkbox-unchecked” wrap=”i”] Set aside a down payment?
[wp-svg-icons icon=”checkbox-unchecked” wrap=”i”] Will you have some savings left over?
[wp-svg-icons icon=”checkbox-unchecked” wrap=”i”] Can you live the way you’d like and cover the mortgage?
[wp-svg-icons icon=”checkbox-unchecked” wrap=”i”] Okay with not having access to your equity anytime soon?
[wp-svg-icons icon=”checkbox-unchecked” wrap=”i”] Considered real estate taxes?
[wp-svg-icons icon=”checkbox-unchecked” wrap=”i”] Have extra funds for any home improvements?
[wp-svg-icons icon=”checkbox-unchecked” wrap=”i”] Thought about having to buy furniture?
Can you afford the ongoing homeownership costs?
[wp-svg-icons icon=”checkbox-unchecked” wrap=”i”] Able to pay for unexpected home repairs?
[wp-svg-icons icon=”checkbox-unchecked” wrap=”i”] Able to cover monthly maintenance?
[wp-svg-icons icon=”checkbox-unchecked” wrap=”i”] Can you pay any increase in monthly bills (gas, electric, water, internet)?
[wp-svg-icons icon=”checkbox-unchecked” wrap=”i”] Thought out how bills may fluctuate with the seasons?
Ready to hang around for a while?
[wp-svg-icons icon=”checkbox-unchecked” wrap=”i”] Happy with your city?
[wp-svg-icons icon=”checkbox-unchecked” wrap=”i”] Do you have a solid job?
[wp-svg-icons icon=”checkbox-unchecked” wrap=”i”] Like the neighborhood?
[wp-svg-icons icon=”checkbox-unchecked” wrap=”i”] Looked into the school districts?
[wp-svg-icons icon=”checkbox-unchecked” wrap=”i”] Researched how the housing market has done recently?
[wp-svg-icons icon=”checkbox-unchecked” wrap=”i”] See yourself staying in the house for at least 5-7 years?
In a good spot financially?
[wp-svg-icons icon=”checkbox-unchecked” wrap=”i”] Credit score solid?
[wp-svg-icons icon=”checkbox-unchecked” wrap=”i”] Are you responsible with your money?
[wp-svg-icons icon=”checkbox-unchecked” wrap=”i”] Credit cards under control?
[wp-svg-icons icon=”checkbox-unchecked” wrap=”i”] Keeping up with your current debt payments?
[wp-svg-icons icon=”checkbox-unchecked” wrap=”i”] Emergency fund set aside?
[wp-svg-icons icon=”checkbox-unchecked” wrap=”i”] Okay with having a large long-term debt?
How many boxes were you able to check? All (or most) of them? Start looking for a realtor! Sounds like the time may be right for you.
If you still have a bit of work to do on some of these items, don’t get down on yourself. It doesn’t mean you’ll never be able to accomplish this goal. You may simply need to adjust what you’re doing a little to get there. If you’d like some guidance along the way, give us a call.