You probably spent the first half of the year living with a roommate or enjoying the bustling city lifestyle that comes with renting an apartment or condo in the heart of downtown. Regardless of your most recent living situation, this summer could be the perfect time to turn in those keys and turn down that renewal lease. You may have been considering it for a while, or it might have just dawned on you that you’re ready to live on your own. Everyone’s situation is unique, but here are seven signs that you might be ready for your own place this summer.
Timing Is Everything
There are many factors to consider if you’re planning to jump from a rental lifestyle to purchasing a space of your own. Some of those important items include the housing market, finding a real estate agent, being comfortable with your living situation, and feeling ready to commit to the responsibility of owning a home, townhome, or condo. Keeping in mind that the entire search process can take up to six months (or more), a lot of preparation and planning goes into initiating the process of becoming a homeowner. If you’re feeling content about this time in your life, it could be a great indicator that you’re ready and prepared to own this summer.
New Contract Loading
One downside to rental properties is being tied to leasing terms. Another crucial part of that lease is the monthly payment. If you’re nearing your renewal period, it might be a perfect time to turn down the next year’s contract and find a place to call your permanent home. Due to many factors, rent has been steadily increasing in many areas of the country. So if your rental payment is higher than you’d prefer, it might make sense to consider a mortgage payment that’s lower than your current rental terms.
Considering that house hunting might take several months, it’s important to know precisely when you have to commit to or turn down your upcoming rental agreement so you don’t incur additional fees and charges. Some companies may be willing to work with you in month-to-month payments or short-term leases should you need additional time to finalize your decision.
Down Payment Ready
Like putting down the first and last month’s rent for certain rental properties, buying a home comes with the ability to make a down payment on your property of choice. Typically, down payments vary depending on the home loan you plan to get. A 20 percent down payment is average, but it’s not required, either. Certain loans may only require a 3.5 to 5 percent down payment. Regardless of which type of loan you plan to get approved for, remember that you’ll need to budget for a down payment and closing costs with your real estate agent.
Closing costs might equal anywhere from 2 to 7 percent of a property’s sale price. If you’re comfortable with those upcoming payments, then that might be another reason why it’s time to consider owning property this summer.
Change ≠ Scary
The ripple effect is a real thing. If you’re experiencing a change in your life, it might be another sign that you’re ready to rethink your living situation. Change comes in all forms; you might have started dating someone seriously or just ended a relationship with someone. Your family may be growing, or you could be anticipating that life step happening soon. From pets to becoming parents to needing a change of scenery, these are some indicators that could mean you’re ready to become a homeowner this summer.
Stable and Committed
Feeling comfortable with where you live and ready to put down roots in your current area? If you aren’t anticipating the next time you’ll be able to hit the road and explore a new place, then that might be a sign that you’re ready to own a home this summer. When settling down, feeling confident about your location is a huge piece of the puzzle. If the thought of locking in your ZIP code for several years doesn’t scare you, consider purchasing a home when you find the right property.
Space Matters
If you’re constantly yearning for more space, whether that be for storage, yard space, closet space, or just room to spread out, then you might be ready to lock in a home of your own. Rental properties like condos and apartments won’t always do the trick. Summer is the perfect time to find a space that suits your needs. Plus, you won’t have to maneuver through the snow or ice during your move.
Credit Is Crucial
If your credit has peaked at least 690 or above, it might be the perfect time to start securing a home loan. From your credit score, you can determine how much money you can borrow, how much interest you’ll be responsible for, what loans you qualify for, and more. Sound like a busy summer ahead? If your credit is high enough, there’s no reason why you shouldn’t at least start exploring your options. With the right support and real estate agent, you’ll be able to make a confident and educated decision about whether this summer is the one that you’ll become a homeowner.