Take some time to check your finances and current situation before you go comparing mortgage rates and house hunting. After all, buying your very first home is a big commitment. It can affect your future.
So before everything else, ask yourself these questions to help you know if you are already ready to buy that sweet home you’ve been eyeing on for months.
- Do you have a stable income?
- Do you plan on making any major life change? Are you going to start a family, get married or change jobs?
- What are things in the next years that can impact your current financial situation?
- Are you ready to move into a new home and stay there for at least five years?
- Do you think you can handle house repairs or pay for a professional in case something happens?
Take your time to answer these questions. Don’t be in a hurry. Consider buying a new house if you plan to stay in it for a minimum of five years. Also take the rental prices, housing market and equity of your home before making any big decisions.
Should You Buy or Rent a House?
This question is what most people ask themselves. Well, to help you we have listed the benefits of each option. You have to consider which things matter to you.
Here are some pros when it comes to buying your own house.
- With each mortgage payment and interest you pay, these can be tax-deductible.
- You don’t have a landlord. That in itself is a benefit. You can do whatever you like in your home without asking someone for approval.
- There are a lot of mortgages you can choose from that can fit your goals and budget such as FHA Loans Dallas.
Also Read: 8 Reasons to Buy a Home
Benefits of Renting
On the other hand, there are also benefits to renting a house. These are:
- You can move with ease. You don’t need to find any renter or sell your home whenever you feel like going somewhere else.
- You have a landlord who will take care of all the home upgrades and repairs.
- There’s no need to buy any homeowners insurance or pay property taxes.
Check which of the two is a good fit for you and then decide if you are ready to buy a house or not.
How To Evaluate Your Financial Situation
Time and again, it is stated that buying a home is one of the most significant purchases that you can make. As such, it is essential that you make sure your financial situation is in order.
You can start the evaluation. Review your billing statements and bank accounts. This will help you check how much are your expenses and income in one month. If you want to buy a house with your spouse, you need to review their finance, too.
Afterward, ask yourself these questions.
- Can you put away some money every month to put into your savings account?
- Do you have a stable job or income?
- Do you have any plans when it comes to managing your debt?
- Do you have some emergency fund?
- Have you saved enough money for the closing costs and down payment?