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Buying your first home is an exciting, yet overwhelming prospect for anybody and should be thought about long and hard before moving forward. You should also make sure you have a basic education on how the real estate market and financing as this has a definite benefit.Before making the decision to become a homeowner it is important to have seriously gone over your finances, budgeting to know what can be afforded. Prospective buyers should also know exactly what they are looking for in a home, preparing themselves accordingly for what is likely to be the biggest financial commitment in their entire lifetime.

The Right Time for Home Ownership

When trying to decide when is the right time to purchase real estate, there are many factors that need to be considered, both in the area of personal finance, as well as the market itself. Both need to be in an ideal state for it to be the most opportune time to buy. This ensures you secure the best possible rate and price, which in turn allows you to feel confident that you’re getting the best possible deal on your new home.

Personal Finance

Purchasing a home is such a huge life decision, especially for first time buyers and it’s imperative to make sure it’s the appropriate decision at the time. Many factors must be considered when preparing to take on your first mortgage, including deciding if you’re ready to settle down long term in one place and be tied to such responsibility. Other important factors that will indicate your readiness more clearly, are:

Steady Employment

Do you have a steady job that is a full-time position? This will be a prerequisite for lenders when securing a mortgage. Self-employed workers will have a much harder time securing financing.

Credit History

A well-established and positive credit history is key to obtaining mortgage approval. Having no established credit will be just as much of an obstacle as having a poor credit rating. Credit ratings can be built or improved by securing a credit card and paying off the balance in full each month.

The Cost of Living

Work out a budget involving your prospective mortgage payment, utilities, insurances and all other costs of living expenses included. This will help determine how much you can afford to borrow and the expenses associated with carrying such a mortgage.


Have you saved an adequate deposit for purchasing a home or will you be looking to buy a home with a low deposit loan. These are available with a minimum of 3% down, but you will secure a much better rate if you have a larger sum to begin with. The smaller the initial deposit, the higher the interest rate, and the higher the mortgage payment.

Savings Reserve

It is important for potential homebuyers to have some savings set away to see them through costly unexpected repairs or any other financial emergencies that may arise.

Knowing the Market

Waiting until the right time to purchase is wise as the real estate market is always fluctuating. Paying attention to what is happening in the industry will be a good indication as to when the best time to buy is.

Interest Rates

Interest rates fluctuate greatly depending on such factors as the applicant’s credit history, the financial institutions current rate and the current rates of competing banks and lenders. Waiting until the rates are ideal could save thousands of pounds over the course of repayment.

Housing Prices

It is important to follow the trends in housing prices and also to be aware that the national trends don’t always reflect the local market. Buying a home during a market high can have detrimental effects in the long term in regards to property value and home equity.

Buying a home can be the best decision you’ve ever made if you do so in a prepared and informed manner, taking advantage of the resources available and making wise financial choices.Real estate is an investment that can offer great return when handled appropriately, however is also a huge responsibility that can prove quite costly and overwhelming if not properly prepared for. Be sure to investigate all aspects of homeownership before deciding if now is the right time for you.