Purchasing your first home is an exciting milestone that can also be a wise investment in your financial future. However, you don’t want to buy more than you can afford or take on more responsibility than you’re capable of managing. To help determine whether the time is right to buy a house, here are three telltale signs that show you’re ready.

How to Tell if You’re Ready to Buy a House?

1. Finances

Whether you recently received a promotion, or you’ve been saving responsibly for several years, it’s crucial to achieve financial security before buying a home. You should be able to put down at least 10% for a down payment—though 15–20% is ideal, as it will make monthly mortgage payments more affordable.

Get a mortgage pre-approval before house-hunting, so you know what you can afford. If you’ve budgeted everything out and still have wiggle room for some leisure, chances are, it’s a good time to buy. In addition to the finances, you’ll want to have a healthy credit score of about 700 or above, as this will play a role in your buying power.

2. Long-Term Thinking

If you’re ready to plant your roots in a neighborhood to start a dream career or a family, buying can be a wise investment. Consider that traditional mortgages are typically 30 years, so you’ll want to stay put for at least five years to reap the most benefit from your investment. If however, you prefer the flexibility to move about freely or haven’t found a place you can imagine living in long-term, renting is a safer bet.

3. Know What You Want

Being indecisive can make the homebuying process arduous for you and your agent. However, if you’ve done the research, narrowed down the desired neighborhoods, and know what you can reasonably afford, it’s a good time to invest.

Dedicate some time to looking at options online before house-hunting to get a feel for your preferred style, layout, and square footage. Also, try to remain flexible and acknowledge the fact that there will always be some level of compromise involved.

If you’re ready to buy a house, turn to EXIT Realty Nexus. Serving the Coon Rapids, MN, area, their licensed real estate agents provide unparalleled customer service with cutting-edge technologies and extensive experience to help you land your dream property. Whether you’re looking to buy a house, list a property for sale, or learn more about exciting careers in real estate with unlimited earning potential, they’re your dedicated partner. To start your journey today, call (763) 757-3948 or visit the website for more information about how they can assist.