Questionnaire: Are You Ready for Your First Home?

Buying a house is a life changing experience, so you need to make sure you are 100% ready before you commit yourself. Just because you are ready financially to own your own home it does not necessarily mean you are ready to change your lifestyle and become a property owner.

Before you own your first home you should establish whether you are financially and emotionally ready.

These few questions should help you to paint a clearer picture as to whether you are ready for your first home.

Money

How would you best describe your finances?

a. My finances are in a good shape and I have no debt

b. My finances are in reasonable shape, I have a small amount of debt

c. I have a lot of debt and am struggling to pay if off

Your Answers

If you answered (a) there should be no reason why you can’t afford a mortgage or be able to meet your monthly payments.

If you answered (B) you may want to pay off some of your debt before you think about becoming a homeowner.

If you answered (C) there is a strong chance you will not be eligible for a mortgage as you have too much debt.

Your Job

How would you describe your job?

a. I have a good job with a good wage

b. My job is reasonably paid but I am just at the start of my career

c. My job does not pay well

Your Answers

If you answered (a), this should make you an ideal candidate to own your first home.

If you answered (b) you may want to assess how secure your job is before you think about getting a mortgage.

If you answered (c) you may find that you will struggle financially to meet your mortgage repayments.

Your Lifestyle

Which of these best describes your lifestyle?

a. I am newly married/living with a partner

b. I’m single, but settled in the town I live

c. I have just finished studying and not sure where I want to live

Your Answers

If you answered (a) and have a partner and want to buy a property together you will have the extra security of two wages so will stand a better chance of being able to get a mortgage.

If you answered (b) then you sound like you are settled in the place where you live and so should be able to commit to a property in that area.

If you answered (c) then you may want to wait a while before buying a property. If you buy too soon and then have to sell it can be expensive to move house in a short space of time.

Your Current Living Situation

How would you describe your current living situation?

a. I’ve been renting for a couple of years

b. I’ve just moved into rented accommodation

c. I’m still living at home

Your Answers

If you answered (a) then you are probably in a good position to think about buying a property. You will have experience of the responsibility that goes alongside running a house and paying rent.

If you answered (b) you still have a bit to learn when it comes to paying bills and monthly rent, but you are on the right track to experiencing what it is like to own a home.

If you answered (c) and are still living at home then you may find it a bit of a transition to go from living with your parents to owing your own home, you may want to spend some renting beforehand.

Spending Habits

How would you describe your spending habits?

a. I’m good at sticking to a monthly budget and rarely go into my overdraft

b. I sometimes go into my overdraft but mostly live within my means

c. I find myself overspending every month and find it hard sticking to a budget

Your Answers

If you answered (a) are good at sticking to a monthly budget then this puts on the right track to being able to manage your mortgage payments.

If you answered (b) you should be able to manage monthly mortgage payments but might need some practice sticking to a budget.

If you answered (c) and find it hard to stick to a budget you want to practice saving some money first before you embark on owning your first property.

You should try and test the water by renting for a while if possible and see if you are able to mange the responsibility. Just because you look ready to own your first home on paper, it does not necessarily mean you should take the plunge. Buying a property is a big step so it is important that you think carefully before taking on the challenge.