Buying a home is a big move, so before taking the plunge, you need to make sure you’re ready personally and financially. This means taking a good look at your finances and assessing your readiness to settle down and take on the responsibilities associated with buying a house.
City Creek Mortgage, one of the trusted mortgage companies in Sandy, shares the instances when home buying makes the most sense.
You have enough money
Having a good income and savings puts you in a better position to take on the responsibility of paying a mortgage. You may also pay a large down payment, which can lower not just the amount you need to borrow, but also your monthly payments.
Note that lenders will also check your debt-to-income (DTI) ratio when determining how much you can afford. Most of them use the 28/36 rule, which states that you should not spend more than 28% of your gross monthly income on household expenses and no more than 36% on total debt payments.
You are stable
Buying a house is a financial and an emotional commitment. Being stable in your career, finances, and personal life can offer you the emotional support needed to pursue homeownership. But if you think you’ll be making significant changes in the future, such as quitting your job to go back to school, you may want to put off buying for now.
You’re ready to settle down in one area
Buying a home means committing to a single area or location for a certain period. If you don’t mind staying or living in the same location for years (or forever), buying a house makes sense. Just be sure to choose a neighborhood that suits your needs and preferences. Note that the location can also affect the value of your home in the future.
You’re comfortable with the responsibilities
Owning a home involves more than just paying a mortgage. You will need to take care of everything, from fixing the yard to repairing the appliances and taking care of the home’s maintenance. These responsibilities are non-existent with renting, as the landlord takes care of everything. If you, however, don’t mind taking on such tasks, buying a house is worth considering.
The decision to buy a home is always a personal choice. The best time will depend on your finances and readiness to commit. If you have concerns about financing a home purchase, get in touch with a reliable mortgage company.