Your First Home: 10 Signs That You’re Ready To Buy a Property

Posted by under Personal Finance . Published: August 19, 2019

Buying their first home property is the primary financial goal of almost all newlyweds I’ve met. The most common question they have for me: “How can we afford to buy a house?”

The answer mostly depends on the type of house they’d like to purchase, their credit worthiness, and their cashflow — especially their cashflow.

If you’re thinking of buying a property soon, then here are some considerations to see if you’re ready to buy your first home. Just note the points of your answer per question, and then add them up for your total score.

1. Why do you want to buy a house?

  • I just want to be free and no longer answer to a landlord. (1 point)
  • I want to build my own home instead of spending money on the monthly rent. (2 points)
  • Buying a house will help stabilize my life and my finances. (3 points)

2. How long have you wanted to buy a home?

  • It’s a recent financial goal that I wanted to achieve. (1 pts)
  • I’ve been thinking about it for a year already. (2 pts)
  • I’ve wanted to do this ever since a few years ago. (3 pts)

3. Have you paid off all your debts?

  • No, I’m still paying off a car loan. (1 pts)
  • No, I have a few low-priced credit card debts and short-term loans. (2 pts)
  • Yes, I’m debt-free. (3 pts)

4. Do you have a stable source of income?

  • No, I don’t have a stable source of income right now. (1 pts)
  • Yes, I have a stable source of income. (2 pts)
  • Yes, I have stable income, and a few other sources of cashflow as well. (3 pts)

5. How long are you planning to stay in the area you’re scouting?

  • Less than three years (1 pts)
  • Around three to five years (2 pts)
  • More than five years (3 pts)

6. Have you already met with your lender and got pre-approved for a mortgage?

  • Yes, but I got declined. (1 pts)
  • No, not yet. (2 pts)
  • Yes, and I’ve already gotten pre-qualified. (3 pts)

7. How do you budget your money?

  • I don’t have a budget, and I’m behind on a few bills. (1 pts)
  • I don’t keep a budget, but I make it a point to save. (2 pts)
  • I have a monthly budget, and I keep track of my spending. (3 pts)
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8. Have you already looked at the home prices in your chosen area?

  • No, not yet. (1 pts)
  • Yes, and they’re higher than what I thought they would be. (2 pts)
  • Yes, and I can afford the downpayment. (3 pts)

9. How much of your monthly income can you comfortably allot for your mortgage?

  • I’m not sure how much I can allot for it. (1 pts)
  • Probably less than 25% of my monthly income. (2 pts)
  • I can allow more than 25% of my monthly income. (3 pts)

10. Do you have a budget for maintenance and home repairs?

  • No, I haven’t thought of that. (1 pts)
  • Yes, I think I have a budget for it. (2 pts)
  • Yes, I have a budget already allocated for these. (3 pts)

YOUR RESULTS:

25 to 30 POINTS
You’re ready to become a homeowner! You’ve already put a lot of thought and planning for it. Continue to be smart with your finances and I wish you all the best in your future home purchase.

17 to 24 POINTS
You’re almost ready! You’re definitely on the right track, but you need to first manage your budget to make sure that you’re financially ready to purchase that home property.

BELOW 17 POINTS
You’re not quite ready yet! Give yourself time to improve your money habits. Build up your income and manage your expenses. With focus and financial discipline, you’ll eventually be able to afford your first home property.

So what score did you get?

By the way, I’d like to give credit to the Moneygment app for inspiring and helping me create this quiz.

Continue learning…

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