6 Signs You Are Ready to Be a Homeowner

Being a homeowner is most people’s dream, but just because we all want it doesn’t mean we’re all ready for it or the right kind of person for that kind of endeavor.

Being a homeowner is more than just picking out paint colors and decorating a beautiful kitchen. There is a lot of financial homework to be done beforehand, not to mention a degree of personal responsibility that’s absolutely necessary, and a thorough understanding of the buying process.

Are you ready to be a homeowner? Here are 6 signs you’re good and ready to purchase your very first home.

1. You have a steady job

The very first requirement to become a homeowner is financial security. The last thing you want is to incur a huge amount of debt in a situation where your employment is unreliable or uncertain.

Having a steady job where you make a decent income is not only great for your own personal security and confidence in this purchase, but it also demonstrates to the bank that you have the means to get this mortgage and you’re not likely to be a risky lender.

Of course, depending on the circumstances and the home you’re trying to buy, you may still be denied for a mortgage, but a steady job is the very first step up the ladder if you dream of ever becoming a homeowner.

2. You’ve saved up a down payment

The other thing that’s non-negotiable? The deposit you need to pay for your home. This may vary, depending on your financial situation and the home you are planning to purchase, but it is generally advised that you have at least a 20% down payment saved up and ready to go.

That does two things: first, it signals to the bank that you’re serious and ready to put your money where your mouth is. You’re not going to default on this loan, because you’ve paid a hefty deposit that you don’t want to lose.

Second, it actually helps you with the mortgage payments, in the long run. The bigger the down payment, the smaller the remaining amount that needs to be paid. So, your mortgage payments will be lower, you’ll pay it off faster, and end up paying less interest on it. Win-win!

3. You’ve lived in the same place forever

One thing you’ll need in order to be a homeowner is the desire and ability to stay put and remain consistent. If you’re currently renting, have you been moving often? Are you constantly looking for a change? Do you have the desire to live in many different places and see different things?  Then buying a house may not be right for you – at least, not yet.

However, if you’ve already been living in the same place for a long time, paying rent on time, taking care of the space you’re living in, and just desire a space you can have free reign in, it might be time for a home of your own. This proves that you have no problem being stable and living in the same place long-term, and that you’re no stranger to taking responsibility for a home year after year. That’s a great quality for a potential homeowner.

4. You’re responsible

And speaking of long-term renting, home ownership comes with a lot of responsibilities – some of them financial, others practical. Owning a home means not just cleaning and decorating, but also performing necessary maintenance – mowing the lawn, sweeping the chimney, cleaning the gutters, repairing the roof, fixing broken windows. Have you ever been in charge of these chores before, and are you up for that?

Then there are the financial responsibilities. Paying property taxes, water and electric bills, paying for internet, paying to fix the boiler – you will be shocked at how quickly (and painfully!) they add up. If you’re not used to having bills in your name, it can be a rude and overwhelming awakening.

5. You know what you’re looking for

Some buyers wake up one day and decide that they want a home of their own, so they start shopping for homes immediately. But they soon discover that they are undecided, that they’re unprepared, and that they don’t know much about the market. It can be an uphill battle.

To be truly ready to buy a home, you have to know what you want. Where do you want to live? In what area? Why here and not somewhere else? What are your needs? How many people will be living here? Will you be working from home? How many bedrooms are you looking for? What kind of layout do you want?

All these things and more are aspects you should be already familiar with. If you have a list and a vision, and you’re realistic about it, you might just be ready to make a purchase.

6. You’re realistic about the process

Most young buyers, especially, get so caught up in the excitement of buying their first home, that they can be a little idealistic about the process. It’s a wonderful time in your life, but you have to understand the realities of it, not just the dreamy parts.

Buying a home is a long, difficult, exhausting, expensive, and at times, heart-breaking process. If you’re ready to buy a home, you understand that you will lose several homes you fall in love with, that you will get outbid, that homes that seem great will turn out to be duds, and that closing on a house can take forever. And not everyone is ready for that.

Bottom line

Major milestones in life can be intimidating, and it’s hard to ever feel completely ready. Many people aren’t. But when it comes to purchasing a home, there are at least some guidelines you can follow to get an idea if you’re there yet.

Being set financially is the very first step, but it’s equally important to be used to this kind of responsibility, and to be prepared for what it means to shop for a home and then maintain it long-term. If you know all of this and you’re still willing to go through with it, congratulations – you’re ready to be a homeowner!

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