While our priority here at The Joseph Bograd Real Estate Team is pairing people with their ideal properties, buying a home has both advantages and disadvantages. Some people don’t need a house, and others aren’t quite ready to buy just yet. Do you think you are prepared to buy your first home? The points below are indicators that although you may feel that you are prepared to buy a property, you might not be.

You Have a Lot of Debt

It will be an ongoing problem if your debt renders you unable to support a mortgage. Therefore, all debts should be factored in when you calculate deposits and monthly mortgage payments. Lenders expect your total debt to be less than a certain percentage of your income. So, you may need to change your spending habits to improve your credit rating and manage a mortgage successfully.

Your Employment History is Unsteady

The majority of mortgage lenders want to see that you’ve kept the same job for at least the last 24 months. They’ll use the previous two years’ worth of salary to calculate your average income. Sticking to a job for that length of time proves stability, whereas income gaps and job changes can signal insecurity. If you qualify for a mortgage based on your expected income, you best make sure that you keep making as much money.

You Have Some Uncertainty About the Area

Unless you are certain that you intend to stay in the area for the next four or five years, you’re not ready to buy. If you do buy, and you end up selling again within 12 months, you’ll end up losing money due to post purchase expenses and closing costs. Therefore, you should hold off from buying a home if you’re planning a move right away.

You Don’t Earn Enough Money

Before you finalize any buying decisions, we recommend you crunch some numbers using a mortgage calculator. You’ll need money upfront, then money for ongoing payments each month. The upfront cash will cover the downpayment and any closing costs. However, you’ll also need some cash for an emergency fund in case something goes wrong with the property after your purchase. Your mortgage, homeowners’ insurance, and taxes should equate to less than a third of your gross income.

If you feel like you might be ready to purchase a home (or not) after reading this article, or would like to speak with one of our realtors to learn more about our Huntingdon Valley PA real estate listings or our Bucks County real estate for sale, please don’t hesitate to reach out to us! Our job is to help you get into the home of your dreams when you’re ready!