How do you know when it’s time to buy a house? For drinking, you would have to meet a certain age requirement before you can drink. Before, you can vote, for most countries you have to be at the legal age of 18. If you want to become president, you would have to meet another age requirement before you are allowed to do so. But with houses, there is no age requirement that would prohibit you from buying a house. While other people may say that banks wouldn’t allow a minor to sign contracts, but if you really have the money and your parents are fine with it, then who’s stopping you?
When it’s time to buy a house for yourself, you just feel it. But your readiness to buy a house is another different question. Here’s what you should also know when buying a house.
- Financial readiness. When you start thinking about buying a house, you should also make sure you can handle the financial burdens and responsibilities that come with it. Try to create a budget for monthly mortgage, house expenses, and even house maintenance. Luckily, houses are more affordable today.
- Mortgage worthiness. Yes, you may be financially ready to buy a house but how about your credit? While houses are now more affordable, mortgage on the other hand, is much more difficult to get. Lenders would carefully consider and look into your income, debts, assets and liabilities. You must have a good credit score. The higher your credit score is, the more likely it is for you to get a good mortgage.
- Length of stay. Ask yourself if you will be living in the house for five years or more because if you don’t, you might not be able to recoup any of the expenses related to the buying and future selling of the house. You may not also be able to build enough equity on the house because the first few years of mortgage payments often go to the interest and not the principal.
- Is it worth it? If you plan on buying property in Edinburgh, make sure it is worth it because first and foremost, houses are a form of investment and people nowadays don’t just buy houses, they buy homes.