Almost every other person around us has one goal and that buying the house of their dreams. For buying the house we all work hard and earn money that could become our haven. However, a lot of times, people make bad decisions by either jumping in with little cash and a lot of mortgages or with no proper planning.
Such situations lead us to one important question of when exactly is the right time to buy your first home or replace the current one with a new one. So to answer those, we have compiled a list of factors with the help of real estate professionals at Belle Property that you need to keep in mind before you make the biggest decision of your life.
If you are going to stick with our advice, we bet you will end up making a great deal when the time is right.
Buying The House When You Have Stable Income
Let’s start with the basics. If you have had a steady flow of income for the past few years, then this serves to be the first good sign that you can take a step forward to buy your own house.
This case becomes more essential when you are going to lend money from an institution to finance your house as lenders thoroughly check your income records to make sure that you earn enough, along with your tax history as well.
If you happen to have a job or business that you know will keep on supporting you in finding your house for the times to come then the time is right for you. But with that being said, don’t think of buying a home that suddenly falls way out of your budget.
When You Know How To Handle Debt
You must calculate your debt-income ratio (your current income – current debt). For those of you who don’t know, the DTI ratio tells you about the amount that you can easily afford as a monthly mortgage payment.
For DTI, you must also consider any student loans, car payments, and credit card debt. While lower DTIs are more favorable, higher DTI means you are going to get yourself into the trouble of paying a debt that is either equivalent or more than your income in worst-case scenarios.
Buying The House When The Market Is Down
If managing money is not a problem for you, then you must keep an eye on moments when the market is down. One great example of such opportunities has been the time period of COVID where property prices either remained stagnant or went down.
These are the times that can easily help you buy your favorite house at your desired price. But to take advantage of these times you do need a lot of patience throughout the years and save money all along.
Buying The House When You’re Ready To Settle Down
Buying the house isn’t going to be cheap. You might even end up paying a lot of money to your lender for years. This means that you must buy your own house at a place where you are willing to live for the next at least 15-20 years.