One of the biggest parts of the American dream is the milestone of buying your first house. Owning a home signifies that you’re an adult and gives you a very real personal value. But owning a home isn’t something that should be taken lightly.

Buying and maintaining a house requires a serious level of maturity, both emotionally and financially. So how do you know if you’re ready to take that leap? Read on to find out if you’re ready to buy your first house.

Steady Job

One of the biggest prerequisites for buying your first house is having a steady job. You don’t have to be making six figures a year, but you do have to have a reliable income that will pay the bill. And in order to get approved for a mortgage, you’re going to need to show pay stubs from at least a few months of work.

Even if you don’t have a full-time job, make sure you’re making enough money every month to support a mortgage. One good way to check if your income is steady enough to support a mortgage is to apply for pre-approval. This will give you a solid idea of if you can get a mortgage and how much you can afford if so.

Good Credit

Another huge piece in the puzzle that will determine your interest rates is your credit score. In simple terms, this is how bankers determine how likely you are to repay a loan. If you’re not sure what a credit score is or if you have one, you aren’t ready to get a mortgage.

If you’re trying to establish or improve a credit score, the best thing you can do is get a credit card and pay it off in full every month. This can be a slippery slope, so be sure you do pay that balance off every single month. Doing things like paying electric bills and rent on time will also help you establish a good credit score.

Solid Savings

You’ve probably heard that one of the most expensive parts of buying a house is the down payment, and we’ll talk about that later. But before you even get to the down payment, you need to make sure you have a solid savings account behind you. You’re going to want at least a thousand dollars, and if you can swing three months’ expenses, so much the better.

Owning your own home comes with the reality of being responsible for maintaining it, and things go wrong. The washing machine or dishwasher or water heater could break and flood your house, the sewer could start malfunctioning, or you could discover foundation problems you have to fix. when these problems arise, you need to have money already set aside to handle them. 

Long-Term Plans

When you’re young, you have a great opportunity to get out and travel the world. You can hop from city to city, job to job, making friends and memories and discovering who you are. This is an amazing time, but if you’re still in that place of wanting to go where the wind takes you, don’t buy a house.

When you start thinking about buying a house, you need to be thinking in terms of long-term plans. You should be ready to settle down somewhere for at least three years if not fifteen or twenty. You should be in a job you like and have a steady path in front of you for the foreseeable future.

Prepared for Home Maintenance

In an apartment, when the dishwasher breaks, a maintenance man comes and fixes it. When light bulbs burn out or the air filters need replacing, the apartment complex takes care of it. When you own your own home, all that maintenance is on your shoulders, and you need to be prepared for it.

Before you buy a new house, you should be comfortable working with a basic set of tools and making some simple repairs. It’s also a good idea to start establishing a network of workmen you can call when major work needs to be done. And you need to prepare yourself to do things like clean the gutters, mow the lawn, and perform all the general upkeep that has to happen on a house.

Some Disposable Income

One of the biggest phenomena that surprises new homeowners is that of being “house poor”. This means you may own a home, but it sucks up all your money. Whether you bought a house outside of your budget or you didn’t plan for all the needed maintenance, you don’t want to wind up in this situation.

The best way you can avoid being house poor is to make sure you have some disposable income now. Are you barely eking out a living, or can you afford to go out for a nice dinner from time to time? If you can afford little luxuries every now and then, you’ll probably be okay affording a home. 

A Down Payment 

As we touched on earlier, one of the biggest chunks of cash you’ll need to pay during the mortgage process will be the down payment. In general, this is between 5 and 20 percent of the mortgage price, and it’s a sort of guarantee to everyone involved that you’ll be able to pay the rest of the loan. The higher your mortgage amount is, the more your lender will ask for as a down payment.

If you can’t get the money together for a down payment, there are ways to get a mortgage without one. You’ll have to be approved for a special loan and pay mortgage insurance, but it can be done. However, if you can’t afford the 5 percent down payment, you may not be ready for all the costs associated with homeownership.

Prepare to Buy Your First House

Buying a first house is a big decision, and it’s not one you should make lightly. Homeownership is a major responsibility, and you have to be ready for it. But if you check off everything on this list, you should be well prepared to handle the costs of owning your own home.

If you’d like to get the best help in finding your new home, check out the rest of our site. We are committed to helping home buyers and sellers make the best decisions about their houses. Contact us today to start the process of finding your dream home.