Buying your first home is one of the most exciting and important things that we get to do as a young couple. The problem with real estate is that many young people dive into any real estate in the belief that anything is better than renting. The truth is, there are a number of factors they should consider before ever buying real estate property of any kind. How do you know if you are ready to buy that first home?
Here are some situations that might signal that the time is just about right:
You are settled in your career and will be in one job for a while. While career changes are likely to happen to most families regardless of home purchases, it still is a good idea to at least have a career that you intend to be hanging around for the near future. This stability is vital especially during the first couple of years that you own your first home.
You have money saved and you are comfortable with the mortgage. Having money in the bank or at least in investments is an absolute must in today’s mortgage world. There are simply too many pitfalls out there in the financial sector to take any chances of default on your loan. You should have at least three months of living expenses saved and socked away. That is at a minimum. Also, you should be absolutely certain that the mortgage is not overly high. If it is too high, then you need to reduce the price or reduce your aspirations.
You are out of school and only plan on continuing education classes in the near future. The last thing you want to be doing is chasing a degree full time while trying to pay off a mortgage. If you are still in school full time, then forget a mortgage for a while. Your time will come, but you need to focus on school and get your degree and career rolling first.
You are settled in your location, at least for several years. While a move is not something you can completely control, you should take care to ensure that you are going to be in place for a bit. It makes little sense to buy a first home and know that you have to move in a couple of years.
The property has been checked out fully, and you are comfortable with the investment. Finally, before you buy that first home make sure you have a professional check out the home. Make sure you know exactly what you are buying into. First time home buyers are especially at risk for being taken by seedy real estate owners, and you should employ someone that knows what they are doing.