How to Know When It’s Time to Buy Your First Home

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Are you ready to start house hunting?

Tired of living in a rented space, but not sure about taking the leap towards homeownership?  Well, buying a home is certainly a big deal, but there’s a good chance that you’re ready for it.  Here are some of the sings that you’re ready to buy your first home.

  • You Have Enough to Make the Down Payment

While many people are interested in buying a home, they are forced to wait because they cannot afford a down payment.  Because a down payment can range anywhere from 3% to 20% of the home’s purchase price, this is a significant financial obstacle.  However, if you have been saving and finally have enough to put a decent chunk of money down on a home, then this is a great sign that you are ready for homeownership.

  • You’ve Improved Your Credit Score

While you don’t need perfect credit to get approved for a mortgage, lenders are far more likely to approve loans for people who have credit scores of 640 or above.  If you have diligently paid off your student loans, credit card debts, and been responsible with your money, then your credit score is probably on the up and up.  If you get your credit score into the recommended range, then you may be ready to own your own home.

  • You’re Ready to Settle Down

While buying is cheaper than renting, this is only true if you plan on staying put for at least three years.  If you see yourself moving in the next couple of years, then you shouldn’t invest in a home, even if you have the money to do so.  However, if you are ready to settle down and put down roots, then buying is a great way to establish yourself in a certain area.

These are some of the signs that you’re ready to buy your first home.  Are you looking to buy or sell?  If so, then contact the experts at Brighton Escrow.  Serving the Hermosa Beach area, we are ready to offer you the top-tier escrow service you deserve.