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4 Signs That You Are Ready To Buy Your Dream House

Your dream house awaits.

Are you ready to purchase your dream house? The thought of a home may sound like a perfect idea in comparison to having a landlord who has rules you have to follow. It may seem like the best alternative is to buy your own house and be your own boss. Also, who doesn’t want to have as many pets as they want? You may even be thinking of what a great investment a house is in comparison to throwing away money towards rent each month. While there may be some truth in all of this thinking, there are some things to consider before buying.

How Do You Know Your Ready to Buy a House/Property?

1. You have a steady job with a good income

If you can put at least 30% towards your mortgage each month, you may be ready to purchase a house. Don’t plan on putting much more towards your mortgage or you may be cutting yourself short on other necessary expenses such as health care, food, unexpected expenses and vehicle maintenance and repairs. You may even still be paying towards your car monthly. If you can easily clear at least 30% towards your mortgage each month, you may be ready to buy.

2. You are regularly putting money in your savings account

If you are saving and have been for awhile, this shows that you are financially stable and may be ready.

3. You love the area

If you truly love the area you want to buy a house in and you plan on staying there for the long run, it may be a good time to buy.

4. You have an excellent credit score

Many banks will give you a better interest rate based on how high your credit score is. Check out to see how you score.


Signs that You are Not Yet Ready to Buy a House/Property

1.Your credit score is low.

It’s better to build up your credit score before trying to purchase such a significant investment as a house.

2. You are just plain tired of your landlord

If your main reason is not to have a landlord, you probably are not yet ready to buy a house.  True, landlords can be a real pain, depending on their personality and how they communicate with you, but your landlord is also the one you get to call when you have a plumbing problem, or the roof needs repairing.  All the main challenges with your rented place are at the landlord’s expense and not yours. That is a huge bonus to know major and minor repairs on your dwelling are not yours to deal with.

3. You have no emergency fund

A good goal to strive for is to build up a savings account first before buying a house.  What happens if you lose your job or you or a family member experience a sickness?  Your money will still need to go towards a mortgage payment each month, and you may need to use savings.

4. You can’t put at least 10% down on the house

The more you can put down on your home investment the better. If you can’t put 10% down, you most likely are not ready for a mortgage.

5. You have some big expenses coming up

If you are adding to your family with a new birth or adoption, you may want to wait a year or so to make sure you can swing the mortgage payments.

6. You have credit debt

If you have any money on a credit card that isn’t going to be paid in full this coming month, you probably are not ready to buy a house.


Whatever you do, don’t purchase a home on a whim.  Also, don’t buy a house because you think it’s always greener on the other side of the fence.  Truly evaluate if this is the right time to buy or not by considering what was talked about in this article.  Just because this year might not be the right time, doesn’t mean that you can’t buy next year or the year after that. You don’t want the bank to foreclose on your house because you decided in haste. If home ownership is your ultimate goal, work towards it and make it a lasting investment.

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