Buying a house is one of the most important life decisions that pop up in your lifetime. It is worth asking yourself the following questions to make sure you are completely ready to own a house.
What is My Credit Score?
According to Forbes your credit score is an important factor in the home buying process because a lower credit score means a higher interest rate on your mortgage. A higher interest rate means your mortgage payment will be higher each month than if your credit score was higher. To increase your credit score, pay down your credit card and loan debt.
Do I Have Enough in Savings?
One thing to keep in mind before buying a house is the savings you will have leftover after putting down a down payment. For emergencies, everyone should have at least six months’ salary saved. If buying a home prevents you from having this amount in savings, it is best to wait.
What Is Your Confidence Level in Your Future Income?
To prevent a future foreclosure, The New York Times suggests thinking about whether your income is guaranteed or based on commission, whether your industry is growing and healthy, and how hard it would be to find a new job if you lose your current one.
Have I Calculated the Total Cost of Buying a House?
It’s important to keep in mind that a house does not just bring a mortgage payment, but also payments for taxes, insurance, utilities, repairs and regular upkeep. Before buying a home, you may want to estimate these costs to see if they fit into your budget.
How Great Is the Location?
Because buying a house is a more permanent decision than renting an apartment, it is vital that you will want to live in the neighborhood you chose for a while. To see if
you will be happy in the location, go to restaurants, use public transportation and visit parks and other attractions in the neighborhood.
How Long Am I Planning on Staying in the Home?
Most experts suggest that you should plan on staying in your home for at least five to seven years to make the investment worth it. If you see yourself getting married and having children in the near future, it is probably best not to buy a one bedroom house.
Am I Emotionally Ready to Own a Home?
Home ownership comes with a lot of added stress and risk. If you are not completely on board with the idea, it may be a good idea to put the home buying process on hold for now.