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buying your first home

How to Know You Are Ready to Buy a Home

Are You Ready To Buy a House?

While you may be excited to buy a house and move into your own place, there are a few things you should think about before you do so. You want to make sure you are ready for the expectations and responsibilities that come with being a homeowner.

 

your first home

There are many things to take into consideration when thinking of buying a home.

 

 

Financial Independence

One of the most important things about becoming a successful homeowner is the ability to effectively raise monthly funds to be able to pay your mortgage, and to have proof to offer your lending institution that you are worthy of a mortgage or home loan.

When you are getting ready to purchase a home, go to your bank and discuss your current financial status, including savings, income, and expenses. This will give you and the broker, or lending institution, a good idea of how much you will be able to borrow against a home loan, setting up your mortgage, and in essence letting you know the price range of the house you can look at purchasing. If you do not have a lot of money saved, are not required to pay any bills, or do not have a stable income from your job, this lack of financial independence may not work in your favour when it comes to buying a home.

Household Responsibilities

If you are thinking you are ready to buy your first house, it is advisable that before you purchase a home, you spend some time renting a house or apartment. Simply moving from your parents’ home into purchasing a house is not the ideal sequence of steps. Living in a rental unit in between teaches you about financial responsibilities, including saving each month for rent and bills, household needs, such as power and gas hook-up, and their associated costs, as well as the time demands for home maintenance. Things such as cleaning the house, landscaping the property and maintaining home systems and appliances can all be time-stealing (and money-stealing!) parts of owning a home, and renting first will begin to help you get used to these household responsibilities.

Are You Ready?

Well versed on the Local Housing Market

No matter when you decide to buy a home, the status of the housing and real estate market at the time you are ready to will play a major role. What that role is however, and how the real estate market works in your favour or against you are important distinctions to make sure you get the house that you want.  Real estate is local, where some areas may be seeing record sales, others could still be in a slump.

Before you begin searching houses for sale in your local market, take some time to analyze where the housing market is, what it is doing, how it is trending, and what this means for you as a future owner. It may mean nothing for you as a first-time buyer, but it could also mean that you can take advantage of certain incentives for first-time buyers.

Do not forget also, that just because you are ready to buy a home, or want to buy a home, does not mean it is a good time to buy a home. If you are not sure, find a real estate agent in your area that you trust and speak to them about your future plans.  Choosing a good agent will help you avoid some of the pitfalls that first time home buyers find themselves in.

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