Buying a house is one of the biggest and most expensive purchases you’ll make as a young professional. Becoming a homeowner comes with a lot of great joys, but also is a lot of work! It’s wise to ensure you’re actually ready – emotionally, financially, and physically before signing the papers and receiving the keys! Let’s explore a few checklist items to ensure you’re actually ready.

You are Clear on your Goals

There seems to be a ton of pressure today to buy a house, whether from our peers and trying to keep up with them, or even from society, buying a house just ‘feels’ like an adult thing to do. However if you’re not ready, then it’s not a good decision! The first thing to ensure you’re good with is that buying a house is actually a goal of yours. Ask yourself why you’d like to buy a house? It is for the potential financial gain? Is it to allow you to put down roots and not have to move again? Is it for more space for a growing family? These are all benefits of owning a home, but make sure that they resonate with you.

Owning a home is an involved process and will take a lot of work during the home search, buying process and as a homeowner. Do you enjoy doing yard work (if you have a yard)? What about repairs and maintenance? How much will you DIY vs pay someone? Also, because of the costs involved in buying and selling a house (i.e. realtor fees and closing costs), you’ll likely need to be in the house several years (3-5) before you could sell the house without losing money (assuming small appreciation each year). Are you ready for that long-term commitment?

Don’t just buy a house because everyone else is doing it or you feel like it’s something that you should do. Buy a house because it’s a goal and dream of yours!

Image credit

You Have a Good Amount of Savings

Buying a house will require a fair amount of money in the bank. Presumably you’re not paying cash for this house (as 99% of us reading this won’t be) and you’ll require a mortgage (a house loan). Banks require a downpayment on the loan, and based on your personal financial situation, or how much the house is, or how the economy is doing (i.e. more money down in a bad economy), you will have to put down anywhere from 5%-20% down. A lot of banks will want to have 20% down and then three months in savings to cover the cost of the property. That’s at least $10,000, and could be more like $20K, $30K, $40K on up. Do you have that much?

It’s also helpful to have some savings leftover so that you can maintain your property. Whether this is an investment house or your primary residence, houses take work which often takes money! You’ll also need a bit of a nest egg, i.e. money set aside for emergencies. Even things that insurance covers will require you to hit your deductible! Assuming you’ve got money in the bank for now and later, you’re ready to proceed and start looking at houses (which is definitely the fun part)! If you believe that you are in a strong position to buy a property then Bellriver Homes have some great homes available.

You Know how to Run the Numbers

Buying a house is a huge purchase and this home will likely be your largest asset. Owning a large asset like this requires maintenance and upkeep, and it will also likely appreciate, i.e. rise in value. Homes generally over a long period of time rise in value and buying a house can prove to be a great investment. To feel confident and ready, you’ll need to ensure that you’ve ‘run the numbers’ on the house. This means making sure you’ve got good money coming in to cover the mortgage and expenses each month; whether you’re renting it out or living in it. Fortunately, a lot of single-family homes have a very predictable cash flow.

Make sure you feel comfortable about paying that monthly mortgage payment (whatever it works out to be) for the next 30 years! Have a plan, have a backup plan and have some cushion in your plan for the unexpected!

You’re Ready for the Responsibility

When something goes wrong in the house, there’s no calling of the landlord and letting someone else worry about it – it’s on you! This applies to you living in your own home or even if you’re renting it out. In our own home owning years we’ve had to deal with: yard work, tree removal, a/c repair, a/c replace, toilet leaks, painting, bathtub leak and drywall repair, filters lightbulbs, ants, roaches, termite bonds and a few more things I’ve probably forgotten we’ve fixed. Same goes with finances; there are lots of bills to be paid each month, each quarter, each year and you need to be organized! Owning a home can be awesome, but don’t come into it thinking it’ll all be super easy and that you can just call the repair person whenever something goes wrong! If you’re not up for the responsibility yet then it’s ok holding out!

Buying a house comes with a lot of benefits but also a lot of costs! Make sure you’re ready for both before deciding to buy a house.

Disclosure: Some links are affiliate links that earn me a commission.