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Many people have the goal of owning their own home, yet when the time comes. The newness of the idea and its hugeness might make you have second thoughts. Perhaps it just doesn’t seem like the right time.
The truth is that for some people, buying a home is not a good idea. If you like to move around from place to place and have relative freedom regarding when you do that. Or if you’re considering a big career move that may or may not mean you need to change countries. For example, then buying won’t work. Yet for those who do want to buy and for whom it makes sense. Waiting for the right time and knowing when that right time is can be hard. Here are some tips, so you’ll know when it is happening.
You Have A Down Payment
One of the biggest reasons people do not buy a property but rent instead is the down payment. Costing up to 20 percent of the purchase price of the house or apartment. That’s a lot of money to have ready to hand over. However, the sooner you start to save for your dream, the sooner it can happen, and once it does, you can enjoy all the benefits that come with owning your own home.
Until you have your down payment in place, it’s best not to think about what you might be able to afford. As circumstances and property prices can change quickly. You don’t want to be disappointed or looking too low. Once you are ready and you have the money, a mortgage broker and estate agents are the first people to contact.
You’re A Growing Family
Another reason to buy a property and to know the time is right to do it is if your family is growing. Renting an apartment is fine when you’re single, and even when you find a partner. You might be content to continue renting.
But if you’re planning to have children, it can often be wise to buy somewhere. Not only do you need to think of schools and good areas for the children to grow up in. But you’ll want to ensure they have a secure place to live, without the worry that your landlord might decide to sell. Or put the rent up, meaning you have to move.
Plus, when you own a property, you’ll have something to leave your children when you pass away. It might not be something you want to think about. But it can be comforting to know you’ll be able to help even when you’re gone.
Your Finances Are In Order
Unless you happen to have a few hundred thousand in your bank account. Buying a house is going to require a mortgage. A mortgage is essentially a substantial loan, and there are some stringent criteria that someone will have to meet. Before the bank or lender gives them the money to buy a house.
In order to obtain a mortgage, your finances need to be in good order. This means your borrowing is under control and at a low level, and your credit rating is good. In addition, your debt to income ratio must be under 40 percent.
When your finances are looking good, and you know you can get a mortgage. Then it could be exactly the right time to go for it. It’s an exciting adventure that could fulfill a long-held dream.