One of the significant milestones or life events in every adult’s life is deciding to settle down and buying a house. You don’t necessarily need to be married or have a family to buy one, nor is it enough to be “willing” to buy a house. There are a lot of things you’d want to check and consider first before you call your bank or local financing institution to get avail of home loans for that dream house you saw in Orem, Utah.
Jumping into the decision of purchasing a house when you or your finances aren’t even ready could quite be disastrous and may even end up with you going bankrupt, losing the house, and suffering from all the stress that comes with these unfortunate events. So, to minimize risks and to help you decide if you’re ready, here are things you’d want to keep in mind:
First off, you need to keep your financial affairs in order. You have to audit yourself and check on any outstanding loans you have, or if you have issues affecting your credit score. If you’re still paying off debt from that car you purchased, or from your student loans, or from the time you got hospitalized, then perhaps it isn’t the right time to jump into a decision that entails you getting another loan. If you’re earning well enough and have a stable job, and you feel like your earning capacity can handle paying off your new housing loan, you might be financially ready to get your home.
Once you’ve thoroughly studied your financial status, you’ll need to worry about the down payment. Specifically, if you’ve saved enough for the down payment on your first home. Even though you can take a loan, you’ll still need to pay the down payment up front. So if your bank account isn’t ready to pay up the down payment, then you’re probably not yet ready. Take a couple of months to save up on for your down payment, or perhaps increase your earning capacity by taking up a second job or a way to supplement your income.
Emotional and Mental Readiness
If you have your finances and savings ready, you’ll need to ask yourself if you are ready. This is perhaps the most important thing to consider as you can find ways to finance and fund your first home through loans, borrowing from friends and family, or getting a second job. But getting a new home is a huge commitment. It means that you’re ready to settle down and take root. You have to ask yourself if you’re willing or happy to stay in your current job (where you’ll probably spend the next few years to pay off your mortgage). If you feel like you’d want to live and work somewhere else, then perhaps it’s not just the right time to buy that house. Don’t just jump into the decision of getting a home by being pressured by friends, family, or co-workers that have already decided to do so; everyone has their own pace, and it’s okay if you’re not yet ready to settle down.
Deciding to buy a house to call home is a major life milestone or development that should not be taken lightly. It takes a lot of planning, self-realization, and self-auditing, as well as some research, to know if you are indeed ready to purchase a piece of real estate and turn it into your home. So, the next time you feel like settling down and think that you’re ready, keep this “checklist” in mind to make sure you’re not making a hasty and poorly planned life-changing decision.