Signs You Are Ready To Buy A House

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    The Nashville housing market continues to boom and more new home opportunities are on the horizon.  That means right now many people are trying to determine when to buy a house.  There is no one way to answer this question,  but there are some signals that it’s okay to start the home search process. What are they?

    Here are the most common signs you are officially ready to buy a house.

    Finances

    Finances are usually the biggest factor for purchasing a home. These three questions can help you determine if your are in the right place to move forward:

    • Are you able to consistently stick to your budget?
    • Do you have enough money in savings to cover potential emergencies?
    • Do you have enough money for a down payment?

    If you can answer yes to all three, then you are already halfway to answering, “Yes!” to being able to buy a home.

    Understanding your budget and sticking to it means you know exactly how much of a house payment you can afford. Adequate savings ensures that you can continue to make your mortgage payments for at least a couple months in the event that something happens to your health or your income. Finally, having a sizable down payment helps you not only with approval for a loan, but can help you avoid Property Mortgage Insurance, which means less out of pocket cost for you each month on your total mortgage payment. An experienced mortgage specialist will help greatly when looking at your housing price range.

    Debt And Credit

    Being financially sound involves more than just your savings and budget. It’s important to have your other debts well under control before tackling a mortgage.  Lenders are very particular about the total amount of debt borrowers have and use a debt-to-income ratio to determine if you are eligible for another loan.  Additionally, having a high credit score will not only help get you approved, but can affect the interest rate you receive as well.

    If you are or have experienced the imbalance and tension that debt can cause in your life, we recommend following Dave Ramsey’s advice on financial freedom.

    5 Year Plan

    Most homeowners need to stay in their house for approximately five years just to recoup the closing costs from their home purchase. Naturally, one cannot prepare for unexpected life changes and job opportunities. It’s important to know that if you sell within a two-year time span and make a profit, you pay capital gains taxes. So, if you feel settled enough to stay in the same city for the next few years, it might be time to look at houses.

    Projects and Surprises

    Home ownership comes with surprises: unforeseen costs or projects that you must be willing to embrace.  Even new homes have a whole set of responsibilities that might be new for you: lawn care, landscaping, plumbing and drywall patching are all examples of common tasks in a home. Perhaps you are particularly handy and can DIY most of this, but if not, you need to be prepared to pay for someone else to help with unforeseen repairs on your new home.

    The idea of owning a home is exhilarating, and the process can be an exciting one if you are properly prepared. These signs that you are ready to buy a home are a good place to start, but only you will know for sure. If you’re not sure whether it’s time for you to make the jump and purchase a home, contact us for a free consultation. Call DeSelms Real Estate at 615.550.5565 to see if it’s the right time to start your home buying adventure!

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    Our agents write often to give you the latest insights on owning a home or property in the local area.

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