Buying a home remains one of the largest financial decisions you’ll make in your life. If you’re wondering if you’re ready for this long-term commitment, here are a few signs to look for to help you decide if now is the time to jump into homeownership.
The first sign that you’re ready for homeownership is that you’re ready to settle down. Buying a home is a long-term investment so you should plan on living in your home for three to five years. If you don’t have any immediate plans to move, buying could be a good option for you.
Before you start looking for a home, its important to make sure your finances are in order: you’re effectively managing your debt or have no debt, you have good credit, and possibly even a down payment saved. This includes having a healthy savings and emergency fund (a good benchmark is having at least six months of expenses saved) to cover any unexpected expenses.
You’re paying for more than just the mortgage. Not only will you need to consider the monthly mortgage payment, but you’ll also need to cover property taxes, homeowners’ insurance, utilities (including water, sewer, and garbage), home owner’s association fees, and routine maintenance. You’ll want to make sure your housing expenses don’t exceed 30% of your take-home pay.
Owning your home means no longer needing to worry about a landlord, but that also means you’re on the hook for any maintenance and upkeep. Are you willing (and ready) to take care of the home maintenance tasks or pay for someone else to fix them?
Knowing what you’re looking for in a new home and the area you’re willing to live in are clear indicators that you’re ready to buy a home. You don’t need to have every detail figured out, but having a general idea of what you’re looking for is a good start. It’s important to remain flexible in your home search but know what you will and won’t compromise on.
FCB Homes builds new homes that offer more of everything you love: more style, craftsmanship, and innovation. With strong roots in the Central Valley, you’re sure to find the right home for your family. When you’re ready to buy a new home in Lodi, Manteca, or Stockton, visit us at FCBHomes.com to learn more about our homes. We can’t wait to welcome you home.