5 Signs You're Financially Ready To Buy a House

Dreaming of having your own house? Find out if you’re ready to make that step into buying one. 

Having your own house is perhaps everyone’s ultimate dream. But with the high cost of land and construction having your own nest can be next to impossible. It takes a lot of courage to sign a sale agreement and take on debt (because unless you are a multimillionaire, you can’t pay for a house or even a condo unit in spot cash). The ironic thing is, the more you wait, the more expensive house and land prices become. So how do you know if you should already buy one? Here are five signs this might just be the right time.

You have good financial standing

If you already have enough money to cover at least half of the loan and have a steady monthly inflow of cash, then you might just be ready to buy a house. Make sure though that you’re buying a house that you can afford to pay. Check your monthly income and then compare it with what you need to pay. Don’t bite more than you can chew.

You have a stable income

Having a stable income does not mean just having a job. It has to be a secure job from a stable company where you have a guaranteed earnings. It means having a monthly income that you can rely on. It can also come from investments you’ve made, from the interests of your savings accounts, or from other business interests.

You have a healthy savings account

The money you will be paying for your house should be on top of your usual expenses. It should not also touch what you have saved for emergency purposes or for business. If you have money to cover all these and still have an extra, then you’re all set to buy a house.

If you have good credit record

If you have debts that you are having a hard time paying off, you have no business buying a house or anything for that matter. A house is a big commitment. If you’re currently in debt, it isn’t time yet. Wait until you have paid all your debts. Having a good credit record will also help you get lower interest rates from banks.

Your rent is basically the same thing

If you are renting now and you are paying basically the same amount, then maybe it’s time to buy a house. If you can pay your monthly rent, then surely, you can do the monthly installments. Compute your saved money and check if you have enough to cover a downpayment. If you do, then consider buying a house.