How to Know When You’re Ready to Own a Home
And just like that, it’s 2022! We can’t wait to see what this next year will bring!
A new year often means new year’s resolutions. What do you have in mind that you want to improve about yourself this year? Perhaps you would like to make personal health and fitness a focus, finding ways to improve your fitness routine and nutrition (when too many Christmas cookies ended up on your plate this holiday season). Maybe you’d rather improve some of the ways you handle your personal finances (especially after all that Black Friday shopping you did).
While there’s nothing wrong with these new commitments in the new year (in fact, they are admirable!), why not go extra ambitious when you ring in 2022? Why not make this the year that you stop renting and start buying!
That’s right-this is the year that YOU could become a homeowner. But in a competitive market like this, making that decision can be intimidating and confusing. A decision as enormous and life-changing as this needs to be carefully considered before making it; meaning, you have to know if you are fully ready and prepared to make this transition before you even begin the process of searching for a home.
Here are a few ways to know for certain that you are ready to become a homeowner rather than a renter in the next year (or, in the future, if you AREN’T ready in 2022):
- You Can Afford a Downpayment: According to The Ascent, when you rent a home, you have to come up with your first and last month’s rent plus a security deposit when you sign your lease. But this amount of money often pales in comparison to the sum you will likely need to provide a downpayment on a home you purchase. Most mortgage loans require a 10% down payment on a home, although they will accept as little as 5% down in some cases.
- You’ve Been at Your Job For A While: My Move details how one of the key signals you are ready to buy a home (and will look appealing to lending companies) is having steady employment. If you’ve been at your job for at least two years, you are on the right track! That’s because mortgage companies will use your employment history to indicate that you’ll continue to have the funds to pay them back over time.
- You Have an Appropriate Amount of Debt: There’s a solid chance that part of your monthly expenses includes student loans, car payments, or maybe even medical bills – and that’s okay! Most loan companies know that expecting borrowers to be completely free of debt is unrealistic. Instead, they will evaluate to see that you don’t have too much debt compared to your income. My Move says that if you have too much debt, you can either find more ways to generate income or pay down the debts that do exist if you want to become a homeowner in 2022.
Whether you are renting, looking to purchase, or are hoping to list your home in the Sumter area, John M. Braham Real Estate Agency of Berkshire Hathaway HomeServices has an expansive resume and rock-solid integrity. For more information on how John M. Braham Real Estate Agency can help you, contact the agency today! Follow their Facebook page for more helpful hints on navigating the always-changing world of real estate.