Buying a home is somewhat like a rite of passage. It’s something you do only once you’ve gained a foothold on life. You’ll probably need a well-paying job to even consider taking out a mortgage, and if you’re living comfortably in your rented apartment and you’re content with life, then why bother even getting a house in the first place?
There are many reasons to take out a mortgage and pick a home, but you may not be financially ready or mentally prepared for the long journey that is buying a house. However, once you’ve finally paid the deposit and made your initial payments, it can feel like a huge weight off your shoulder and you’ll feel a great sense of accomplishment. If you’re unsure when the right time to buy a house is, then read on to find out more.
Do you really need a home?
There are times when you really don’t need to buy a home. For instance, if you’re going to take over your parent’s home once they pass away, or if they plan to hand it over to you and move into a retirement home, then you technically already have a place to call home and all you need to do is wait. You might be sick of the current home you’re living in, but with a little bit of house optimisation and renovation, you could turn it into a house worth living in. A great reason to own a home would be, for example, the birth of a child or if your family is growing bigger.
Are you financially prepared?
In addition to having a well-paying job, you’re also going to need to clear all of your debts and pay off your loan. If you’re unsure if you qualify for a mortgage in the first place, then it’s never a bad idea to use a calculator to check. If you are qualified financially, then the next step to take is to check if your credit history is good enough to take out a mortgage. For instance, if you’ve had a lot of debt in the past or you’ve been late on payments for bills and such, then you might need to work on improving your credit rating before companies are willing to loan you money for a house.
Are you financially stable?
Although a well-paying job is usually enough for you to pay off a mortgage, you need to consider your job security. Mortgages typically aren’t paid off in under a decade, so if you’re currently working on a per-contract basis or if you’re working part-time at several different jobs, then you may want to rethink owning a home. It’s important that you have a stable job with a fairly high salary before you invest in a mortgage because the last thing you want is to be fired or lose your job while still trying to pay off your mortgage. It’s for this reason that you always need to have an emergency fund prepared for accidents, emergencies and even redundancy.