Have you been renting all your life? Are you sick and tired of wasting money over a roof that won’t be yours no matter how long you pay for it? Then maybe it’s high time you considered buying your own house. But before you jump on the property ladder, there are many things that you need to check first.
If there is one decision you first need to make, that is to check if buying a house now makes more sense than waiting. You may have found the perfect house and land for sale around the Geelong area. But the question remains: Is it time you sealed the deal, or is it better to be a little more patient? While it may be impossible to tell when the perfect time to make a home purchase is, the following can help you make the decision:
Do a financial check
Of course, you will need to check your current financial situation. If you have more than enough money to buy a house in cash, that doesn’t already mean that you should forget to consider the perks of applying for a mortgage. If you need a home loan, you need to consider if you have enough money to pay for the fees like the down payment, monthly mortgage, and closing fee.
Know the condition of your credit
Your credit score and history matter when buying a house with a mortgage. There are minimum credit score requirements that you need to meet. You’ll also find it hard to get approved if you have no credit history. If you have a low credit score or if your credit history is not in good shape, then you’ll want to wait it out before buying a house. This will give you enough time to pay off your debts, build a good credit history, and improve your credit score.
Check if you’re financially stable in the future
You may have a high-paying job now, but can it guarantee your mortgage payments in the future? When applying for a mortgage loan, lenders would want to make sure that you can afford the loan now and in the future. They will check if you have enough cash in case something goes wrong. You’ll also need to have a solid employment history to qualify. Don’t forget about the true cost of homeownership. There are other costs and expenses to include in your budget once you become a homeowner.
List down your future plans
Do you plan on moving soon? Does your job require you to relocate every so often or not? What do you plan to achieve in the next five to ten years? Are you finally willing to stay in a single residence for a long time? Are you planning on building a family soon? Answering these questions and knowing what your plans are in the future can help you decide whether you should wait or buy a house now.
It is easy to feel pressured to buy a house once you’ve reached a certain age. Family and friends may urge you to buy a house. Your partner may also demand that you now make a home purchase so that you can settle down. However, the decision is up to you.