Buying a home is something likely on your adult bucket list to do. However, no one has really defined the age at which you should buy your own home. In fact, it can be quiet confusing to determine just when buying a home is a good option for you. Here are some helpful perspectives that can allow you to discover when it’s time to undergo that large purchase to grow into your new life.
There’s Never A Perfect Time
Contrary to all the movies you’ve likely seen, there’s no picture-perfect life. When it comes to purchasing a home, there will always be reasons that will hold you back. You may mistake these reasons for the conclusion that it isn’t time yet to have your own piece of paradise. However, we urge you to reconsider.
There’s never going to be an absolutely perfect time to buy your first home. You’re always going to have some reservations that you will need to work through. Sometimes it’s just about putting one foot in front of the other. Once you get started, you’ll likely discover that buying your own home is the right decision for your life.
Get Your Life In Order
Before you make the decision to buy your first home, there are some things that you must consider. While working past some reservations is necessary to get your own home, there are specific aspects that you’ll want to work out prior to the home buying process. Let’s take a look at what some of these are below.
Get Your Credit Score In Order
Buying a home will most likely require you to take out a mortgage loan. This type of loan is awarded based on your credit score, among other factors. When you have a great credit score, banks will provide you with a mortgage at a great rate. If you have a terrible credit score, you’re going to have trouble getting the financing you need to buy a home. Work on improving your credit score to at least a 680 to 720 before you go to look for a new home.
Save Up Some Downpayment Money
No matter what type of home loan you get approved for, you’re going to need some downpayment money. This is money that you give to the lender at the start of your mortgage loan. It goes towards the overall payback of your mortgage. For new home buyers, this could be as low as three percent of the purchase price. The amount you have to put down will highly depend on the lender and type of financing that you get for your home loan.
Make Sure Your Budget Can Handle It
Don’t make the mistake of only considering your mortgage payment into your budget. When you move into your first home, there are many other expenses you need to be aware of. These include trash, water, sewer, electricity, insurance, and home maintenance costs. You should sit down and plan out your budget according to the average costs of these services. This will give you a good idea of what you’ll owe when living in your home.
Get A Pre-Approval First
Before you head out to look for homes with your real estate agent, you need to get a pre-approval first. This requires you to go to a bank or other mortgage lender. You’ll need to submit documents like your paystubs and tax returns for them to process your eligibility for a loan with them. You need to make sure that you can get pre-approved for a loan so that when you go to look at a home, the homeowner takes you seriously.
Buying your first home can be a big step for many. It’s always been something on your bucket list, but it can be nerve-wracking when you get to that point in your life. The above information will help you to determine if you’re ready to purchase your very first home or not.