We all need a permanent home, even if it is a metaphorical home. There are times when we get signs from the universe that maybe now is the time to purchase our own home. If you can achieve some of these important financial milestones then it may be your time.
Good Credit
The one subject that should be taught in every high school – well one really important subject of many – is managing your credit. Your credit is essential to functioning in capitalism. There are general guidelines when it comes to maintaining good credit because even no credit is bad credit. Which no one teaches you anything about.
First, you should only use up to 30% of your available credit at any given time. Therefore, if your credit card limit is $3,000, do not use more than $900 on it for any purchase. If you spend all $900 each month, make sure you pay off that $900 each month. Make payments on time to avoid paying any interest.
Making payments on time every month is one of the leading factors in maintaining a healthy credit score. There are some great benefits to some available credit cards if you are amongst those who can maintain a high score. A lot of cards provide cashback, balance transfers, and other benefits to help you save additional money. However, with credit, you have to be careful to not have a revolving balance of debt every month so be cautious.
Steady, Promising Income
You'll find in all the research you do with steps to purchasing a home it's going to suggest that you have a good amount of money saved and a decent salary. Or if you inherit extra money or come into money another way, you should still have a good job that will continue to provide you with monetary stability.
There is an understanding in the finance world that we shouldn't be spending more than 30% of our income on housing each month. It seems we may be onto something with 30%. Nonetheless, you mustn't be left paying your mortgage each month and not able to pay any other bills. Owning a home comes with expenses that you need to be mentally and financially prepared for.
For example, if your monthly income is $4,000 then you should not be spending more than $1,200 each month on your mortgage. If you live with a partner then that gives you even more flexibility. Your utilities that come with your housing should come to less than 10% of your monthly income. That means you should spend less than $400 a month on your utilities. You may be able to own $1,200 worth of home every month, but can you provide electricity, wifi, and heat to the square footage of a $1,200 home in your local market? If you can budget each month with all of this in mind, you can certainly look into purchasing a home.
Practical Approach
Lastly, if you approach your search for a home in a practical way to what works best with your family's income and needs, then you'll succeed. Are you looking for a new home? An eXp Realty provides a home search in Florida, where you will find a variety of houses that will cater to all your needs. Look into homes that are in available price ranges, work with the environment you need and find comfort in, and offer the proper amenities. If you have 4 children living in your home, you need more than 1 bathroom.
Don't purchase something that you can't afford or that you will end up hating because it doesn't offer what a home should provide. You need to be able to have a place to sleep, room to cook and feed your loved ones, and enough bathrooms to cater to the whole crew. With logical planning in mind, you can accomplish owning your permanent home.
If you are at the point where you can say you are living familiarly to the above, then you can probably safely make moves towards purchasing yours forever home. When you have doubts, always seek professionals. Real estate agents and advisors can assist you with looking for the perfect home for your budget. Are you looking for a new home? Contractors and appraisers can give you proper estimates on repairs or the overall value. Trust your gut and make good financial choices and you should be living in your new home in no time at all.