Buying a home is one of the biggest financial decisions we can ever make, which makes it even more imperative to put a lot of thought into that decision. It’s not just about having enough money; there are plenty of other important factors to bring into consideration in making such a big decision. These are the signs that mean that you may be ready to become a homeowner.
You know what you want
The importance of research cannot be overstated, especially if you’re planning on getting your own place. Aside from just knowing what you want your home to look like or where you want it to be situated in, you should also know what your budget is, the kind of environment you might be entering, the state of the housing market, the legalities involved, etc. Once you know what you want, the process of acquiring your property will be smoother and less intimidating.
You’re financially stable
One of the most important things to consider when deciding if it is the time for you to buy a home for yourself is whether you are already financially stable or not. This involves a lot of different aspects, such as being able to fully pay off (or at least manage) your outstanding debt; having enough money for a down payment and for other expenses such as mortgage, taxes, furnishings, and utilities; and still being able to set some money aside for savings. It won’t be worth it if you are able to buy a place but find that you have no funds for other important everyday expenses.
You have a steady job
Having a steady source of income—whether that’s your job or your business—will help you remain financially stable, which means that you’ll be able to pay your mortgage consistently and still have enough money for other things. It will also be easier for your loan to be approved if you have solid employment to back you up.
You have good credit
If you intend to apply for a loan to help finance your home, you’ll have to first make sure that you have good credit. Banks, insurance companies, and other financial institutions look at credit score, which represents a person’s ability to pay off loans, to assess whether he or she should be approved or not. If you are able to manage your debts and pay dues faithfully, this likely means that you have favourable credit, and that it will be easier for you to pay for your own home.
You’re not planning on moving elsewhere soon
If you are working in a specific place and don’t have any intentions to transfer somewhere else in the near future, it might be more practical for you to buy a house instead of renting one. A home is a major investment, and if you suddenly have to leave after having just bought one, you’ll end up losing out on that investment.
You’re settling down
Maybe you have kids, or are getting married and planning on having children in the near future. Obviously, you would want to raise your family in a stable and safe environment. If this is the case, it might be better for you to buy a home. After all, renting a home means that you have to pay a certain amount every month, and if you have a family to support, your rent will only take away from your budget at home.
You want to make a place for yourself
One of the sad things about living in rented homes is that there is only so much you can do with it in terms of decorating and renovating. If you have a home of your own, you’re free to do whatever you want with the space you have. You’ll finally be able to create a home that is true to who you are!
You’re ready for the responsibility
Having your own home involves a lot of responsibility. You will be accountable for its upkeep and maintenance, and should other more complicated issues arise, you’ll have to be able to handle them head-on. When deciding to buy a property, discern whether you’re truly ready to accept that responsibility and carry it well.
This story originally appeared on Realliving.com.ph.
* Minor edits have been made by the Entrepreneur.com.ph editors.