Posted on: 29 December 2020
Making the decision to go from renter to homeowner is different for every family. After all, buying a home has a huge impact on your immediate finances, as well as your future as a family. That said, there are some clear signs when a family is ready to buy their first home. Here are four to look for:
You Have Enough Saved for a Down Payment
Even if you can easily afford a monthly mortgage payment, you also need to have enough saved for a down payment. The good news is that thanks to programs like FHA loans that offer low down payments for first-time borrowers, the down payment may not need to be as big as you are imagining.
On the other hand, the larger your down payment, the more reasonable your payments will be. It's a good idea to meet with a mortgage broker to run the numbers regarding different down payment amounts. That way, if you decide you need to save a bit longer, you can start right away.
You Live in an Area Where Homes Are Appreciating
Another sign that it's time to buy is if you live in a hot market where home values are appreciating quickly. If you can afford to buy a home now, it may make sense to do so, instead of waiting and risking that you will no longer be able to afford a home in a year or two when they're more expensive. Buying a home in a hot market will allow you to build up wealth more quickly.
Your Monthly Budget is Low-Stress
If you are living paycheck-to-paycheck and struggling to pay rent, it's likely not the best time to buy a home. After all, homeownership comes with additional expenses like homeowner's insurance and home repairs. If your budget has plenty of room in it though, and you make significantly more than you spend in a month, you can likely buy a home without running into budget issues.
Your Family is Growing
Finally, a major sign it's time to buy a single-family home is if your family is growing. With each additional child or pet, it may become more difficult to find a rental that has enough space. Buying a home with enough bedrooms, as well as a yard, will ensure your growing family has all the room they need.
If these signs are resonating with you, it's time to contact a real estate agent who is experienced with first-time homebuyers looking for a single-family home. They will be able to guide you along the way during the entire home buying process, to help ensure you find the perfect home.Share