How to Know If You’re Ready to Buy a Home

By Chip Hodgkins

The Hodgkins Homes Team specializes in Residential Real Estate Selling and Buying, mortgage, title, development, new construction and remodeling.

Should I buy a house? Am I ready to buy a house? That’s really the question, and it’s one we hear all the time from people in Central New York who are renting and wondering if now is the right time to make the move.

Here’s how we think about it. If you’ve been paying rent comfortably for at least a year and you’re stable in that payment, you’re probably more ready than you realize.

And here’s the part that a lot of renters don’t think about. Every month that you pay rent, you’re paying a mortgage. It’s just not yours. It’s the landlord’s. That money is going toward their equity, their net worth, not yours.

If you’re going to make that payment anyway, it makes a lot more sense to put it toward your own home, your own equity, and your own financial future. Find a neighborhood you want to live in, look at homes in a price range that’s similar to what you’re paying in rent, and start putting that money to work for you instead of for someone else.

Here’s a stat that puts it into perspective. Homeowners have 400% more net worth than renters. That’s not a small difference. Over time, the equity you build by owning a home becomes one of the biggest contributors to your overall financial picture.

So how do you know if you’re ready? It comes down to two things:

• Can you comfortably afford your current rent for a full year without stress?
• Is your credit in a stable place?

If the answer to both of those is yes, it’s time to seriously consider buying.

If you’re renting in Central New York and considering making the move to homeownership, we’d love to help you figure out your next step. Call us at (315) 449-6697 or email info@hodgkinshomes.com. You can also visit hodgkinshomes.com for more information.