Buying a home is everyone’s dream. Ever since we were born, we have been spoon-fed into buying a house. I doubt if anyone has ever thought of living in a rented place or just keep moving all along.
Earlier, long waiting lines, more than 10 face times with the lenders, multi-folds of documents submission, and high-interest rates; made the whole buying process quite cumbersome and involved lots and lots of thinking beforehand. Now the interest rate has fallen to 3.5% making it seem as if anyone is suitable to buy. But remember that old time saying, think twice before buying into the easy way out.
Buying a house is not about age. The question here shouldn’t be when but who. Who are you? What is your position in life? It’s about the person you would have to become before buying a house. Many people buy when they are just 25, others might wait till they turn 40. Although, there are people who might just rent. There’s nothing wrong with living in a rented house.
Owning a house definitely has many financial security advantages but you should always think properly before taking such a step that might never stop affecting your life in some or another way. Ask yourself these 4 questions before going to buy a house.
How well are you financially?
And here I don’t mean that buying a house is something that only the wealthier can afford. Instead, I mean, are you clear with all your debts? Student loans, credit card bills, and other loans. Debt is a symptom of a greater problem: not enough money. If you are forced to use a credit card because there seems to always be more months than money, do not buy a house.
Have you saved enough for a down payment?
So, yes that 3.5% we talked about earlier, seems easy to pay but its not just about the loan amount that you are paying when you buy a house there are other expenses too like the furniture to start with, have you included repairing and furnishing cost and the insurances and taxes. These costs will easily add thousands of dollars to your bottom line. There’s not much worse than buying your dream home and not having a cent to fix it up to fulfill your dream.
Are you ready to settle?
Here comes the most underrated question. People usually leave it out of their consideration. So, I will ask, how many jobs have you switched up till now? Is this the final city that you are ready to give into? No, you don’t have to answer me but consider answering yourself before settling down with a house. Home is a long-term investment. I recommend planning on staying in your home for at least five years. If you aren’t ready to commit to that length of time yet, it’s okay. Just don’t jump on the “I need to buy a house because everyone else is” bandwagon.
Can you fix your leaks?
I remember, one of my cousins bought this really beautiful house in the countryside but a few months after buying he started to have leakage issues making the mornings difficult to get with. These little surprises are a part of home ownership, and you should be prepared for them both financially and psychologically. When you are the owner of the house you either have to fix it yourself or have the resources to get it done.
So, are you mindful of the thought of buying a house? Can you answer yes to these questions? If so, then go ahead and get the house of your dreams, but if you’re anywhere doubtful about these cases then you should think twice before talking to the lender.