Signs You’re Ready to be a Homeowner

Perhaps you’ve been dreaming of a nice house with white picket fences, a big backyard and granite countertops. It’s actually not surprising considering that buying a home has always been part of the American dream. But before you make the leap, you have to understand that buying a house is a big financial commitment. Not only should you be prepared financially, but emotionally as well. Meeting these criteria can make a difference between success and frustration.

Here are 4 ways to know if you are truly ready to buy your first home.

You’re taking financial steps

While your dream home may not be within your reach right away, you can take steps to turn this dream into reality. Saving for a down payment is a good start.

Buying a house comes with a slew of expenses. So, aside from the down payment, you also have to factor in other additional fees such as closing costs, inspection fees, moving costs, initial repairs, etc. Having your current finances sorted out is a good step towards homeownership, and good money management is an important skill that you must have.

Your credit report is in good shape

Since this is a big purchase, you will probably need to apply for a loan. In order for you to qualify, you need to have a decent credit history.

Your credit history will show the number of bank accounts you have open, your current debt, previous loans you have applied for, and whether or not you have paid out these loans. Lenders are going to take a look at your credit report to see how reliable you are in paying debts.

You plan to stay

Buying a home is a long-term commitment. You should be willing to stay put for at least 5 years. Typically, that’s how long it may take to recoup your buying and selling costs.

If you’re still not sure if you’d stay put for that long, renting might be a better option for you.