Buying a home is one of the biggest financial decisions a person, or family, can make. For many of our members, buying their first, or dream, home is a major lifestyle and investment goal. Yet, not everybody is ready right now to buy a home, while others are!

Knowing when you are ready to buy a home requires a hard look at both your life and finances. To help you figure out if you are ready to buy a home, whether it’s your first one or finally buying your dream home, here’s some things you need to look at.

Are You Financially Ready?

The biggest factor on whether you are ready to buy a home is if you can financially afford it. If you can’t even pay for a mortgage month after month, you shouldn’t be trying to buy a home right now.

There are several elements that affect whether you are financially ready or not. First, what does your income look like? Pull out your budget and see if you could continue living your current lifestyle alongside a mortgage for a home you would want. You’ll also need to account for extra bills like utilities, home insurance, taxes, and more when looking at your budget.

Next, what about the future of your income? Are you stable in your job? If you are self-employed, do you have a history of a stable income? Buying a home is a long term commitment, so you need to be sure you can keep paying for it years down the road. Some lenders won’t even approve you for a loan unless you’ve been at your job for a year.

One last major financial point you should consider is your credit. Your credit score will play a huge role in whether you are approved for a mortgage loan, and what type of interest rates you can get. If you have a low credit score, you should focus on improving it before looking to buy a home.

If you feel comfortable with these three factors, having a large enough and stable income alongside good credit, you might be financially ready to buy a home. There are a lot more money factors people can consider (like having a strong savings and no other debts) but these are the basics.

Looking to Put Down Roots?

Buying a home is a long term commitment, and is much harder to move away from than when renting a place. If you want to buy a home, you should be reasonably sure you want to stay in the area for a long time.

If you want to travel around and live in different parts of the world, buying a home might not be the best choice right now. Whether it’s wanting to live in Japan for a year to experience the culture or having to move to a different state for work, if you think you might be moving soon, don’t buy a home.

It’s also important when picking your home is choosing a place you’d want to live for a long time. If you hate being in a big city, don’t buy a home in the city. Looking for a place to raise kids? Find a home near good schools and fun parks. Location plays a huge role in being happy with your home.

Excited to Mow the Lawn?

With home ownership comes extra responsibilities, especially in fixing and maintaining it. When renting a place, if something breaks, your landlord has to fix or replace it. When you own a home, that’s all on you.

If you don’t have the time, or desire, to do all the work of maintaining a home, it might be worthwhile to stick to renting. That way, you have less responsibilities and work to do in keeping the place nice.

On the flip side, owning a home gives you a lot more control over the look and design of your property. Rather than needing permission to paint the walls or knock out a wall to have a larger living room, you can just take charge and do it!

Needing More Space?

If you find yourself needing more space, buying a home could give you the space you need to grow. Whether that means having a yard for kids to play, a garage to fix up cars in, or a space in your backyard to grow your garden, a home is a great way for people to get their extra space.

Apartments are great, but often the larger ones come with a heavy monthly rent. If you feel like you just need more space, for whatever reason, buying a home might be just the thing you need to do.

Are You Ready For Your New Home?

If you feel truly ready to buy your new home, or even improve your current one, Pioneer is ready to help you meet your goal. Whether you need a special savings account to build your down payment or ready to apply for a mortgage, Pioneer is excited to be a part of your home buying journey.

Get Pre-Approved Today!