So, you’ve begun to search for your first home – and you couldn’t be more excited! Maybe you’ve already checked out the gorgeous neighborhoods at Havenwood! But are you actually ready to take the plunge? Here’s a helpful list of ways to tell if you’re truly ready for the commitment. Take a look and see where you land!
You’re ready to commit to a specific location.
Don’t commit to a home of your dreams if you’re planning to move in the near future; you likely won’t recoup closing costs.
You are out of debt.
Taking on a mortgage while saddled with tons of credit card debt is not advised; take some time to work on your finances and pay it down.
You have a steady income.
Most mortgages will require pre approval based on your income, but make sure that you feel secure in your position before taking on a major purchase like a home.
You have a pressing need for more space.
Whether it’s an in home workshop or another kid on the way, when you need the space, it could be time to start looking!
You know how to make and stick to a budget.
Owning a home comes with a great deal of financial responsibility. Make sure you have tight control over where your money goes; if you haven’t used a budget before, make sure you have one that works!
Your credit score is in good shape.
The terms of your home loan are determined in large part based on your credit score, so take the time to do appropriate credit repair before you attempt to apply for a mortgage.
You’ve had some home repair experience.
Owning a home comes with plenty of opportunity to use that toolbox; it might be time to do some practice first!
You’ve determined the kind of home you want.
Once you start working with a real estate agent, things can move quickly. Know the type of home you’re looking for, and save time searching endlessly and aimlessly!
Your savings can support a down payment.
When you purchase your first home, you’ll need to provide a down payment, which can vary in amount. Make sure your savings can support the payment while you still retain a healthy cushion.
You have a savings account that can support home repairs.
Similar to the previous point, make sure you have money left over! There’s no point in purchasing a home if you’re not able to make the repairs needed for comfortable living once you move in.
You and your partner are aligned (if applicable).
If you’re purchasing a home with someone else, make sure you agree! Do you like the area? Enjoy the neighborhood? These are important factors since you’ll be committing to your home together.
You’re confident the market is in a good place.
As we know, the housing market is subject to boom and bust like any other. Make sure you do your research to determine if it’s the best time to buy; will you get your money’s worth?
You have a good real estate agent.
Though some people can find success without an agent, it’s the best way to ensure you’re getting a fair price. Agents can also point you to important resources for first time homebuyers that may save you money at closing.
You’re ready to make some sacrifices during the first year.
Unless you’re really budgeted, expect to make some trade offs during your first year of home ownership; it may not be the time to book your European getaway! Funds will be allocated in more places than you anticipate, so make sure you’re prepared.
When you know, you know!
If you’re feeling ready after these tips, then go for it! We wish you luck as you search for your first, very special home.