Buying a home – How to know that you are ready or not

Perhaps this is one of the biggest purchases that you will make throughout your life, so you should consider carefully whether you can afford to buy a home and what you would like it to be.

How to find out that you are ready

The decision to marry is largely influenced by emotions The decision to buy your own home should be the opposite: completely independent of emotions. When considering whether you are willing to have your own home, you need to make a thorough and unbiased assessment of your financial situation and the local real estate market.

The list below can guide you if you are ready or not:

  • Can you find a home that suits you and absorbs a maximum of one third of your income?
  • Do you have enough money for an advance payment of 20%?
  • Are you ready to move and live in the dwelling for at least five years, preferably more? In addition to the installments and the mortgage there are significant costs when paying the loan and selling, and if it is unlikely the price of your property will rise rapidly, your investment will go to the wind. If the real estate market is stagnant, be prepared to live in the home for ten or more years.

Common terms

Do you know what the real estate concepts mean below? If the answer is negative, it does not mean you are not ready, you just have to do a little research.

Rising prices / Impairment:

You have to strive to buy a property with enough positive attributes, the price of which will increase and will not decrease with the time until you are ready to sell it.

Resale / Reseller:

When the market is strong, the resells buy property, renovate them, and then immediately put them on sale to sell them at a profit.

Oversaturation of the market:

Saturation of the real estate market means that properties can not be sold for a long time. This shows that the market is dominated by buyers and that there is an opportunity to negotiate prices lower than those announced.

Excessive contributions:

If you buy a property that is so expensive that monthly mortgage payments allow you only to eat spaghetti and put on secondhand clothes, your contributions are too high.

Credit report:

A report that contains detailed information about your credit history, including records of overdue bills, loans, and credit card payments, as well as information about your bank accounts and cost history. Banks that can give you credit (a mortgage credit, for example) review this report and the credit score that results from it to determine the risk at which they can give you money.

This article was made with the courtesy of Еnd of tenancy cleaning North London company. It is a professional cleaning agency which will help you with the moving-out and  moving-in into your home. They offer expert cleaning services for any case.