Buying a house is one of the most stressful things you will ever do. Entire articles have been written about why buying a home is stressful. Yes, there’s the stress of trying to come up with a down payment, but there are also overlooked costs and fierce competition.
As stressful as the experience may be, being a homeowner is many peoples’ dream. Maybe it’s your dream too, but how do you know if you’re ready to buy a house?
You Have Dependable Income
First things first, is your income dependable and stable?
A series of frequent job changes may suggest instability. Or if you’re new to working, you may not be earning enough to qualify for a mortgage.
Most lenders will want to see at least 2 years of tax returns and pay stubs as proof of your income.
If your income fluctuates, or if you’re self-employed, getting a mortgage can be harder, so make sure you have proof of steady, consistent income. There are self employed mortgages and other alternative options you can explore if you are unable to secure traditional loans.
Make sure you have an emergency fund too, in case you do manage to purchase a home only to lose your job through no fault of your own.
You Are Comfortable With Debt
A mortgage is, at the end of the day, a debt. Are you currently capable of managing your own debt? Furthermore, are you comfortable taking on the long term debt of a house?
If the answer to either of those questions is no, then you should hold off on buying a house.
However, if you’re okay with the burden of a mortgage and can manage your monthly debts, you can continue to build credit. Paying your bills is just one of the factors that affect your credit score.
You Are Willing to Make Sacrifices
Ultimately, you need to be willing to make sacrifices if you want to purchase a house. Some of those sacrifices are financial. If you enjoy living a little more luxurious, eating out frequently, or traveling, you may have to sacrifice some of those expenditures in order to afford to buy and maintain a home.
Other sacrifices pertain to the home itself. Maybe you can’t afford a home in your first choice of neighborhoods, or maybe you can’t afford a home with the exact layout or size you want.
Remember, a home is what you make it. That’s why in recent years, there’s been more and more talk about smaller living spaces, such as tiny homes. A tiny home or tiny house may seem impractical, but they come in a variety of sizes, often with plenty of storage options and a variety of layouts.
For the more adventurous folks or for those who desire to live as sustainably as possible, look into off grid tiny houses.
Are You Ready to Buy a House
Buying a home will be one of the most stressful tasks you complete in your life. There’s the requirement for dependable income, a need for you to be comfortable taking on and managing additional debt, and a desire to make sacrifices to give you and your family a permanent home. However, if you know you are up to the task, you’re ready to buy a house.
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