Article Submitted By – Jerry Armen
It is difficult to know when to take the leap and buy your first home. It is not an easy decision to make, because it is a great responsibility. Here are some signs that could indicate you are ready to buy a new home.
You have learned how to set a home budget and you can manage the additional cost of owning your own home.
You have a down payment. This money is not just for the lenders. It is for you. This is equity. If you have to sell early, due to unforeseen personal circumstances, you will lose money if you do not have equity built up in the house. This equity also plays as a factor when you need to access money in an emergency.
There are many circumstances in life that work against buying a home. If you are in one of these or facing one of these, you need to seriously re-consider purchasing a new home. If you are either in school or going to return to school, you may not be ready to pay the mortgage. If you are starting a family, it is likely that in 6 months you may be unable to make your mortgage payment. If you are calculating your ability to make payments based on a two-income household and one of you must stop working due to pregnancy and childbirth, then it may not be the right time to buy a home. If, on the other hand, you have a stable source of income that you know will be there for 10-20 years and there are no up-and-coming life events that may suck your finances dry, then you are ready to buy a home.