Now that our economy seems to be recovering into a much more stable position, becoming a first-time owner isn’t as intimating. It might be the time to start thinking about buying into the Australian dream of homeownership. Although every situation is unique, there are a couple of solid signs that will tell you if you’re ready for homeownership. Read on to see if you’re ready for that dream home.
You have a steady job. Without a job or any steady stream of income, you’re thedream of homeownership will be extremely unlikely. However, if you’re secured with your current position or have been in a company or business for years, then the more likely that your job or business will be viewed as steady enough for lenders to back up homeownership.
You are free from debt. You have successfully paid off the outstanding credit card and car payment debt so you don’t have those extra bills that may reduce your ability to pay for a mortgage. The extra cash you have that won’t be going to debt payments is vital to ensure that you can cover the expenses of being a homeowner, which includes homeowner’s insurance, property tax, maintenance, repairs, and furnishings.
You have a high credit score. Paying off your debt diligently and watching your credit report will allow you to boost your credit score, which will get you a better deal from lenders as well as a lower interest rate. Lower interest rate means lower monthly mortgage payment. This means becominga homeowner becomes a more affordable prospect.
You have solid emergency funds and savings. Certain circumstances happen regularly whether with a house or in your life. Therefore, it makes sense to plan for this by having extra accounts, which includes emergency funds and saving accounts. After all, it won’t do you good to rely on your monthly income to cover unexpected costs since your monthly income has already been calculated and is crucial for the mortgage and other bills.
You can shell out high down payment. 10% down payment saved outside of your savings and emergency funds total means you’re ready to buy a house. However, if you can put down up to 20 percent, it’ll be even better since you’ll effectively avoid PMI or private mortgage insurance requirement. As a plus, more down payment means lesser monthly payment.
You know your way around. Doing your own research (like what you’re doing right now) just means that you’re responsible enough to handle the preliminaries of home hunting and buying, There are tools online that can help you calculate home loan interest rates, compare home loans, get helpful guides, and even get in touch with a lending authority.
The Bottom Line
So, does all of these mean you’re ready to buy a house? If you can answer “yes” to these factors, then you can now move on to the next step of getting prequalified, choosing a Realtor, and visiting availablehomes for sale. Now your dream of homeownership can start to become a reality.