7 Signs it Might Be Time to Buy a Home

After years of renting, it can be difficult to know when it’s time to take the next step and start a new chapter in your life — in other words, pulling the trigger and finally realizing it’s time to buy a home.

7 Ways to Know If It’s Your Time to Buy a Home

Buying a home is a personal decision that should be taken seriously, strategically, and with great care. If you’re unsure as to whether now is the right time to buy a home, or if you would benefit from waiting for a little longer, see if these telltale signs of real estate readiness resonate with you.

#1. You’re Tired of Renting

One of the biggest things that prompt people to buy a home is being tired of renting.

Renting can be convenient when you’re just starting out and getting on your own two feet, but it comes with many limitations — like not being able to do what you want with the property, having to abide by the leasing rules and regulations of the owner, and not being able to build equity.

If you’re perfectly comfortable with renting and are not interested in making any big changes right now, that’s a red light against buying a home at this time.

#2. You’re Ready to Settle Down

If you’re at a point in life where you’re seeking stability and longevity, buying a home may be the perfect way to achieve your goal of settling down. When you own a property, you don’t have to worry about rents being raised or other circumstances that could technically push you out of the home. You’ll gain the solid footing to begin building out your life how you want to.

If you’re planning on moving soon or know you don’t want to stay in the same place for an extended period of time, it’s likely not the best time for you to buy a home.

#3. You’re Financially Stable

If your finances are in a great place, investing in a home is one of the best things you can do. Buying a home helps you build wealth that can last for generations. Through this asset, you’ll be able to build equity and mitigate the depreciation of cash by putting your money to work for you.

If you’re still building your savings and paying down debts, it might not be the right time for you to buy a home.

#4. You’ve Been at the Same Job for Years

If you’ve been at the same job for five years or more, you may be eligible to access beneficial mortgage terms such as reduced interest and waived fees. Since lenders are interested in finding out how reliable you are as a borrower, they pay close attention to your income source.

When you have a solid career that you have sustained for years, your borrowing credentials are boosted. If you’ve just started a job, lenders can’t guarantee that you’ll stay in that company after they’ve lent you the money. When you’re new at a position, lenders may increase the interest and require additional insurance policies or fees to secure your loan.

If you just started a new job, you might want to wait until you’ve been at the same company for a longer period of time before you buy to strengthen your mortgage qualifications.

#5. You’re Ready to Build a Family

If you and your partner are thinking about building a family, a great first step is to buy a home. Families and homeownership go hand-in-hand as it gives your family a stable place to grow roots for years to come. It is possible to rent, but it’s not always ideal to be worrying about landlord rules and regulations when you’re trying to take responsibility for your family and raise your kids.

If you’re not quite ready to settle down yet, it may be best to hold off on buying a home.

#6. You’d Rather Pay Your Own Mortgage Than Someone Else’s

When you rent, your monthly bill to your landlord could be going directly into their mortgage payment. There may come a time when you realize, “why am I paying someone else’s mortgage rather than my own?”

If you feel comfortable relying on a landlord to take care of the expenses and responsibilities associated with owning a property, it’s probably better for you to wait to buy until you feel ready.

#7. Your Credit Score Has Been Strong for a Long Time

If your credit score has been high for years, you’re probably in a great position to apply for a mortgage to buy a home. Your credit score is the first thing that introduces you to lenders, so leveraging strong positive credit history will make it easier — and more affordable — for you to buy a home.

On the other hand, if you still need time to build up your credit, it may not be the right time to enter into homeownership.

For more real estate insights and advice, browse through more articles from RealEstateAgents.com.