Top signs you’re ready to buy a home

Are you spending an inordinate amount of time window shopping for potential homes?  At what point does just dreaming of buying a home become more of a firm reality?   Here are some signs to help you know if you’re ready to make that switch.

You want to make your mark

Being a renter often comes with limitations about how much you can make the property your own.  Your rental agreement may allow you to put up some pictures and perhaps even paint some walls, but often renovations are not on the cards.  When you are a homeowner, there is much greater freedom in decision making over decor and changes to the property, so you can truly make it feel like home.

Wanting to stay in one location for a while

Buying a home is a big decision, emotionally and financially.  You may have had a life change or have decided now is the right time for you to put down some roots.  That's great if so, as you should only really consider purchasing a home if you are prepared and able to stay put for at least a few years otherwise it may end up becoming a costly decision. There are upfront costs to homebuying plus additional costs when needing to sell such as real estate agent fees, attorney fees, potentially charges from your lender, to name just a few.  You could be out of pocket if you need to sell up in a short timeframe between buying and selling a home, so ideally you’d want to stay put for a few years at least.

Yearning for financial security

Whilst buying and moving home can be costly, often owning a home is seen as a sound financial investment.  House prices do fluctuate, but over time, the trend is upwards in value.  Owning equity in a property gives you a chance to benefit from any house price growth.

You have built good credit

Your options are more limited if you haven’t taken practical steps to ensure you are in the best possible position to buy a home.  Your credit history and score will often be used as part of the approval considerations for various lending options.  Widen your options when it comes to financing the home and participations in programs by understanding your credit report and how this may affect your eligibility.  You can obtain free copies of your credit report to help you stay on top of this.

You have a stable income

Again, practically speaking, you need to make sure you can afford to pay the costs that come month in, month out, with homeownership.  Mortgage-financed purchases will see you needing to make a principal & interest payment to the mortgage lender, but also any  Private Mortgage Insurance (PMI) required, plus property taxes, homeowner's insurance, and any ongoing maintenance and repair costs.  There are some programs that can make budgeting that bit easier such as Ownify with our 5 years of fixed monthly payments.

You can easily manage your debt

Another financial consideration is your other necessary outgoings, namely your debt.  Many lenders and financing programs will look at your Debt-to-income during their underwriting process to judge how much you could afford to pay.

You have a down payment

The upfront costs, usually the largest of which is the required down payment, is often a real hurdle for many to achieving homeownership.  Saving can be hard, so well done if you are managing to put aside money from each paycheck to ensure you can get on the property ladder. Some programs require a smaller downpayment, so it may be worth looking into some of these alternate options that mean your dream can become a reality sooner.

You are fed up of renting

Renting can be a great thing, but often the limitations of being a renter can become frustrating. If you are in this position and can tick off the other signs above, it’s the right time to make a change and look seriously into your options for buying a home!  

If you're ready to get pre-qualified then apply now here.

If you would like a quick check on your eligibility for Ownify, use our tool here.