You finally have a house in your sight and are wondering if you’re ready to buy it. You want to know if you can afford this new house or if you’re ready to take the next step and stabilize your life on a new property. Buying a new house takes a lot of responsibility and preparation, so it’s important you identify which things you need prior to signing that lease.
Here are some things that can be indicators that you’re ready to buy a house.
You are free of debt.
One of the first indicators that you’re ready to buy a house is that you are debt-free—or at least on your way there. This debt could be from credit cards, car leases, and other types of debt that can affect your monthly payments. If you have debt, it could be an indicator that you don’t have enough money to afford a house. This is why it’s important to evaluate your financial situation prior to making a big decision such as buying a house.
Your credit score is in good shape.
Likewise, it’s important that your credit score is in good shape prior to even looking at new houses. A good credit score is anything above 700, and it will help the bank or financial institution determine whether you’re worthy of their loans. A good credit score will show them you’re responsible enough with your money to pay them back in the right time frame. If you have a bad credit score, banks will not even look your way.
You have a steady job.
Another indicator that you’re ready to buy a house is that you have a steady job. Having a steady job can ensure you’ll get a paycheck for the next years of your life and afford the house you’re looking to buy. Additionally, most banks will not give out loans to people who have been in a job for less than two years—some may make an exception for those that have been over six months in certain companies.
Your savings and emergency funds are thriving.
Moreover, you may want to consider having a large emergency fund prior to buying a new house. This emergency fund will help you in any case where you lose your job for any reason or if you need to go through an expensive medical procedure. Additionally, you may want to have savings for your new house’s new services such as utilities, pool cleaning, HVAC servicing, and even landscaping. You can even contact some of the best Denver landscapers so they can help you determine a good price quote for your new home’s landscaping job.
Likewise, your savings can go into a home warranty to cover unexpected home repair costs. These costs can be for anything like plumbing, air conditioning repairs, or appliance replacements. You can invest in home warranty companies in GA such as AFC. AFC can help Georgia residents with low rates, transparency in their services, and benefits to their members with guaranteed repairs. They work with contractors that provide up to three years of warranty for labor and repair jobs.
Your new house aligns with your goals.
Lastly, you’ll want to make sure your goals are aligned with your home purchase. For instance, if you’re looking to settle down in a house in the city to be closer to your work, or if you want to move to the countryside to raise a family, your new home must reflect that. You don’t want to move to a small house with a small patio if you’re looking to raise farm animals. Whatever your goals are, ensure they’re aligned with your new house.