6 Signs You Are Ready to Stop Renting and Buy Your Own Property

People rent for different reasons, ranging from financial to personal. Renting may be a practical option for some, especially those who have just started living on their own or are about to start a family. But for others, having their own house or condo is the ultimate dream.

There may be hurdles that keep you from getting your own property, but at some point, you’ll want to stop renting as your desire to settle down grows stronger.

With the real estate market becoming more buyer-friendly and offering flexible payment terms (which will most likely continue post-pandemic), perhaps it’s high time that you consider making a big leap to achieve your dream. Now, you can carefully think about when to stop renting and buy a house you can call your own.

Below, we’ve enumerated some telltale signs that you’re ready to buy your own property.

1. You have a steady flow of income

Buying a home is a huge investment and financial responsibility. You’ll need to shell out a sizable sum to purchase and live in your own property. That’s why it’s essential to have a steady source of income to ensure that you can pay the mortgage, monthly fixed expenses, maintenance costs, property taxes, and other costs that come with owning a home.

In addition, banks look into your employment history and income sources during the loan application process to make sure that you can pay your monthly dues.

2. You have manageable debt

There’s no strict requirement that says you need to be debt-free when looking into properties and applying for a property loan. However, banks and other loan institutions check your debt-to-income (DTI) ratio to ensure that you don’t have massive debt which happens when the amount you owe creditors is higher than what you make.

Banks assess the applicant’s DTI to see if they have manageable debt and whether or not they can afford to add mortgage payment to their monthly fixed expenses. So if you think you have manageable debt, you are more likely to get pre-approved for a mortgage—bringing you one step closer to owning a property.

3. You have enough savings

Do you have a considerable amount of savings set aside as your safety net? Will it be enough to cover any unpredictable expenses like emergency repairs or accidents? If so, then you’re clear to shop for a property.

The purpose of having enough savings is to ensure your budget for monthly expenses won’t be disturbed in case a financial emergency occurs and overwhelms you. For example, adequate savings could mean having 3-6 months’ worth of living expenses covered so you wouldn’t be left bone-dry and your monthly payments remain unaffected.

4. You are ready to make a down payment

Apart from the considerable savings you have set aside, preparing a down payment plus closing costs for the big investment is a good sign you are ready to move forward from renting. If you can allot enough money to cover your down payment, then you’ve already overcome a huge financial wall.

Moreover, you’re certainly prepared to purchase a property if you also have money saved up for the other costs associated with purchasing a property. Having money ready for the down payment, having enough savings, and protecting your bank account from going zero are good signs that you’re ready to become a homeowner.

5. You have a good loan or credit record

A good credit record is important because it tells how much you can borrow and how capable you are of paying your mortgage. As long as you’re able to pay your dues on time, settle your debts regularly, and maintain a healthy credit standing, creditors are likely to consider you as responsible and capable enough for homeownership.

6. You imagine yourself living in a neighborhood you like

If you have finally seen a neighborhood you love and can picture yourself or your family belonging to that community for years to come, that says you’re ready to settle down.

Stop Renting and Start Owning

Simply put, if your finances can handle the costs and all the other extras that come with owning a property—and comfortably at that—then the time has come to make the significant investment. You have long wanted to own a property. Once your budget, needs, and lifestyle align, then you may be ready for a milestone of becoming a homeowner. 

With a sound financial position and enough wiggle room to finally purchase a property for yourself or your family, it’s time to start looking! Mandani Bay’s roster of top-notch properties is a good place to begin your search for condos for sale in Cebu. So visit Mandani Bay now to find your dream home!