FIVE Signs That You May Be Ready For Homeownership

It is ALWAYS a great time to buy a home when YOU ARE READY!  If the stars have aligned and you are financially and mentally prepared to become a home owner, then now is a great time to buy. However, if you are not financially prepared to take the leap, do not despair. When you are ready, it will still be a great time to buy. Here are five signs that you may be ready to purchase a home:

1. You are financially prepared. Homebuyer readiness is specific to each individual. If it’s a financial struggle to get the home, it may be equally difficult to keep it. Be sure that your decision to purchase a home is very specific to your particular circumstances and not “forced” by market conditions. A down payment, closing costs, two to three months of estimated mortgage payments (inclusive of principal, interest, taxes and insurance-PITI) in a liquid/easily accessible account are all things to consider before buying a home. Before purchasing, if you are unsure, it may be a helpful to seek guidance from a financial planner, mortgage loan officer and/or real estate professional. An experienced professional can help you navigate the numerous options that may be available to you in your pursuit of home ownership.
2. You Have (Relative) Job Security. We don’t always know for sure that our job is secure because we simply do not have the ability to predict the future. Who knew that we would be in the middle of a global pandemic in 2020 and the job market would take such a hit? For this reason, I say RELATIVE job security. This is to suggest that you have a job in which there are no immediate signs or threats of financial distress within your company.  In addition, you have performed at a level that makes you an asset at work with staying power.
3. You Plan to Stay in the Area for at least the Next Five Years. If you want to have the freedom to move relatively easily and you are unsure about your desire to stay in a particular area for the next five years, you may want to hold off from buying. However, if you plan to stick around for a while, it may be time to take advantage of the many benefits that come with homeownership.
4. Renting is Costing You Money. Perhaps your tax professional has repeatedly mentioned how beneficial homeownership would be for you during tax season. Or maybe you believe that you are spending more on rent than what homeownership might cost you on average. With homeownership, all repairs, maintenance and everything associated with your home become your responsibility, which is not the case with renting. However, when you rent, you are not building any equity whereas homeownership offers the opportunity to build equity in a property and increase your personal net worth.
5. Homeownership is a Personal Goal. Not everyone desires to be a homeowner. For some people, and depending on your lifestyle, homeownership may feel like a hassle. Homeownership and investing in real estate in general is a great thing to add to your personal portfolio and use as a wealth builder. No matter where you are on your personal journey, if homeownership is a goal, stay the course, remain consistent and make it happen.

Purchasing a home is likely the largest investment most of us will make during the course of our lives. It’s a major decision that often takes a lot of time, consideration and planning. Please contact me with any questions you may have, as I would love to assist you along the path to homeownership.   Seeking guidance and information well in advance of a planned home purchase will help to better prepare you for the journey ahead.