We’ve all done it – browsing through Zillow all starry-eyed, dreaming of buying a house before we’re ready, or looking at homes way out of our realistic price range. Whether it’s cultural norms telling us it’s “time” to buy a house, or we’re tempted just because all of our friends are buying houses, there are several ways to know when it’s really time to buy.
1. You’ve saved a down payment
It is recommended that buyers save 20% of the purchase price as a down payment. Of course there are ways around this, but saving for the full down payment is always ideal. You won’t need to pay private mortgage insurance, will have lower monthly payments, and will pay less interest over the course of the loan.
2. You’ve factored in other homeowner costs
Having an idea of how much house you can afford is the first step in your home search, but don’t forget to factor in other costs, like closing costs, moving costs, insurance, repair, maintenance, and property taxes.
3. You’ll still have savings
If purchasing a house means depleting all the emergency savings you’ve accumulated, or dipping into retirement accounts, it’s probably not time yet. Keep saving! The process of buying a home is already a big life decision – don’t make it more stressful by putting yourself in a bad financial situation.
4. You see yourself in that house long-term
If you envision yourself moving again within a few years (whether it’s due to a growing family, downsizing, retiring, or other life circumstances), take into consideration the costs involved in selling your new home and moving again.
5. You’re ready for home maintenance
When you’re renting and there’s a water leak, it’s easy enough to call your landlord and have them spend their time and money fixing the problem. When you’re a homeowner, you need to make sure that you can either fix the problems (that we can guarantee will arise at some point or another!) yourself, or you have the ability to pay others to fix them.
So, are you ready? If you’ve been browsing Zillow with hearts in your eyes and you’ve answered “yes” to the situations on this list, we’d love nothing more than to help you find your dream home! Contact the Hansen Home Team today!