Six Signs You're Ready To Buy a House

Posted: April 28, 2022

A cozy apartment with limited space, but everything is organized and well-used.

On one hand, you’re tired of renting. You want your own place that you can make your own. You can’t wait to pick out paint colors and host barbeques in the backyard. On the other hand, buying a home would be the biggest purchase you’ve ever made. It can be a little intimidating, to say the least! How do you know when it’s time to make your big move?

1. Your income is steady.

You’ve had a stable job for years. You can prove that you have the income to afford a house, and you’re confident you make enough to take care of monthly mortgage payments, insurance and maintenance expenses.

2. You have a good credit score.

You’ve established a credit history by having a mix of credit over the years. Perhaps you have an auto loan, credit card and student loans. You’ve demonstrated that you can handle credit responsibly by making on-time payments. All your hard work has paid off, and now you have a good credit score to show for it. (Not sure what your credit score is? Find it in Credit Hub!)

3. You know your budget.

You’ve crunched the numbers. You’ve used a mortgage calculator to estimate what type of monthly payments you can afford, and you know your price range for house hunting.

4. You’ve saved for a down payment.

Each paycheck you diligently move money to your savings. When you get extra money like a tax refund, you add it to your nest egg. You’ve saved enough to put at least the minimum amount needed down.

5. You’ve built an emergency fund.

You know that if your furnace goes kaput in the middle of winter or if you need a plumber to fix the kitchen sink, you’re on the hook. There will be no landlord to call. You’ve set aside money, so you can handle those unexpected expenses.

6. You’re ready to put down roots.

You’re not itching to sell all your belongings and go backpack across Europe or move across the country for a new job. You know where you want to live. You’ve thought through all the things that are important to you when choosing a location like being close to family and friends, a short commute and a community you could see yourself living in for at least the next five years.

Ready to become a homeowner? We can help you get pre-approved, so you’re prepared to make an offer once you find your dream home!