4 Signs That You Are Ready To Purchase Your First Home

For the typical adult, thoughts around homeownership are never far from your mind. This is an excellent goal to have from as early on as possible, and done right, buying a home is one of the best decisions you will ever make. 

However, when is the right time to buy a house?

Here are some signs that you are ready to purchase your first home. 

1. You Have Found ‘’The Place’’

Most people will live in several different areas before finding ”the place”. This place is the spot that checks all your boxes when you think about the ideal place to live and put some roots.

The job you love is here. If you have kids, there are great schools around. You have warm neighbours and access to malls, restaurants, parks, etc. In short: the perfect house in an excellent neighbourhood. 

Besides the above, you should see yourself living here for a long time, if not for a lifetime, at least ten or more years. If you feel this way about a particular house and your finances are right, you might be ripe for your first home. 

2. Finances

Many people feel ready to buy a house after saving enough for a down payment. 

This is a gross miscalculation. In actual fact, you need more than a down payment to be financially ready to own a house. You also need to pay for:

• Property taxes
• Upkeep
• Home upkeep and maintenance ( repairs, replacements, HVAC, plumbing and so on)
• Pest control
• Savings (enough to cater for your mortgage payments and living expenses  for a few months should you be out of work)

You’re ready if you have enough in your savings to handle the listed costs and then some. 

3. You Have A Good Credit Score

A credit score speaks of your creditworthiness. If it’s not good, your chances of getting a mortgage are pretty low, and the cost of credit is often higher. 

Both TransUnion and Equifax provide credit card reports for a fee. A good report indicates homeownership readiness, of course, in consideration with the other factors discussed here. 

4. You Are Not Planning For Huge Ticket Items Soon

While you might be able to afford a house right now, think about how this scenario might change in the next two to five years.

Any expensive purchases and decisions affect your finances, which affects your ability to afford your mortgage payments. For example, do you want to go back to school? Start a business? Have a baby? Do you or your spouse intend to give up work for any reason?

If you are not planning for any of these, and your income will hold steady, you might be ready for home ownership. If not, it’s probably safer to rent for a while longer.

Final Thoughts

If you check the boxes above, you are well and ready to be more serious about becoming a homeowner. This should be fun, but it can quickly get stressful and overwhelming.

We understand this at Metro Mortgage Group and endeavour to help homeowners like you have an easier, faster, financially sound home-buying process. So talk to us for any assistance you might need with credit improvement, home equity lines of credit, refinancing and first-time homebuyer’s mortgages.

Don’t go in blind; call me today. 

Are you ready to purchase your first home? Reach out to me directly or start your application here: www.sandraforscutt.ca/mortgage-application/