Are You Ready to Buy Your First Home?

Are you thinking about becoming a first-time home owner? The fact that it’s on your mind means it just might be the right time to start the home buying process. But it’s a big decision that requires some serious thought.

The good news is there are a number of telltale signals that can help you figure out if you’re really ready. So before you make this life-changing leap, consider these five signs that you’re ready to buy your first home.

5 Signs You're Ready to Buy Your First Home

You feel like you’re in a good place. And you want to stay there. Do you like where you live enough to stay where you are? Buying a house doesn’t mean you can never move again. But because of bank fees, down payments and moving expenses, staying put for at least four to five years makes the most financial sense.

You feel good about your income. With your first home comes your first mortgage. Being fully confident in your ability to make your house payment every 30 days is a big deal. If you feel like your job and your income are on solid ground, and you know you’ll have no problem paying your other bills, it’s another good sign you’re ready to own.

Your credit is in great shape. Keeping your credit in good shape should be a top priority. Not only will good credit help you get a loan, it’ll save you thousands and thousands of dollars over the years.
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You’ve got some money in the bank. A down payment is a chunk of change and a significant step in the buying process. The great news for first-timers who don’t have a huge savings account — you can buy with as little as 3.5% down. That’s still serious money, but much more achievable for many. Just be careful not to spend everything you have on the money down. You’ll need cash for closing costs, insurance and taxes. And you’ll want some left over for that new set of furniture!

You’re ready for the responsibility. And the last — but maybe the best — sign you’re ready to buy: You know you’re ready and willing to take on this big responsibility! You’re aware there will likely be leaks, creaks and drafts, rickety roofs and worn-out water heaters. But if you’re confident you’ve got what it takes to take on these challenges and more, then you just might be ready to buy!

Steps to Buying Your First Home

Now that you’ve made the decision to buy your first home, it’s important to take the time to educate yourself on the home buying process. How do you save for a down payment? Where should you buy home insurance? And what’s the deal with being prequalified versus preapproved for a mortgage? Don’t worry — we’ve highlighted each step of buying your first home so you can start your home buying journey with confidence.

Once you've taken the leap and purchased your first home, connect with an American Family agent to learn all the ways your homeowner insurance can help make sure your new hard-earned dream never goes unprotected.

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