Homeownership has always been considered as a big step towards your growth graph. But it is impossible for buyers to decide the right time to take that step. How will you contemplate that now this is a perfect time and you are ready to invest in a house?
Let’s have a look at those signs which will assure you that you are now ready to buy a house.
Owning a house can be put on two opposite scales of the spectrum, one side tilts on the early side and the other on the late side owning to many reasons, if you are planning to buy a home very early then it can be done only on the basis of mortgage and of course, if you are a late buyer then you must have enough savings to buy a home direct.
1. Debt-free Accounts
The first and foremost important aspect which needs to be considered, your debt should be under control. Rather it should reflect as you are almost debt-free from all existing loans. There is a term called DTI ratio (Debt to Income Ratio).
(Total monthly payments ÷ monthly income) x 100 = DTI
As per the real estate consultant advice, If your DTI range is less than or equal to 36% to 45%, then this can be the right time for you to purchase a house.
2. Ready with Down Payment
Real estate experts always advise that you should have about 20% of the purchase value of your house saved for a down payment. As per directions of the RBI, banks, and NBFCs are supposed to grant only 80% of the property value as a loan, and the rest 20% has to be arranged by the borrower.
It is advisable to have a diversified income source apart from the monthly salary. So that even after paying the down payment you are having sufficient funds that can be used for emergencies.
3. Good Credit Score
Having a good credit score will definitely impact your home loan interest rate. A credit score between 750 and 900 is considered very good. The closer your score is to 900, the faster your loan gets approved. A credible score provides multiple benefits for the loan acquisition such as maximum loan amount, offers in interest rates, and longer duration, etc.
As per the expert advice, if your credit score is below 650 then you have to improve it before applying for a home loan. And congratulations are in order, if you have maintained your score well, you are one more step closer to buying a house.
4. Not Planning Bigger Expenses in the Future
Did you confirm the decision of buying a house then for a stable balance in the finance, make sure you do not plan any bigger expenses in the coming future? If not you will surely end with some conflicts in managing your accounts. You should be quite stable in your lifestyle so that you can take your house buying decision.
5. Fix Job with Stable Location
Don’t have a stable career? Still, Looking for a stable job? Think you might want to move to a new city? You might not be ready to buy a home. Make sure you are with a fixed-job and stable location for at least 5-6 years then you can think about buying a new house.
6. Tired of Rental Houses? You are ready to buy a house 😉
I think this might be the main reason why everyone thinks about having their own house. After spending lots of money and time in rental houses, at one point, you will be tired of rental houses and this is one more sign that you are ready to buy a house. If you have checked all points mentioned above, then let’s go ahead and do it.
It is a very proud feeling of buying your own house so you should be mentally as well as financially ready. Keep all points in your mind and then make your final decisions.
In this situation, real estate consultants play a very important role, as per the market trend and research they can add more possibilities for confirming your decision.
Reach out to our real estate experts and clear your all doubts. Call: +91 96202 46980
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