Here are four financial signs you are not ready to buy your own home

Climbing the ladder and owning one’s home has long been part of the ‘adulting dream’, but with interest rates still unpredictable and the cost of living in full effect, timing is everything in the decision to purchase. Even if you’re sick of paying the mortgage for your landlord, buying before you’re on solid ground financially could be the source of future pain.

If you are currently browsing property sites, these four signs could indicate that you are not ready to buy a home yet

Your deposit is your only outlay

Firstly, many first-time purchases involve scrapping together a deposit of 5 percent or 10 percent and thinking they have crossed the finish line. The actual cost, however, starts from the price point. There are stamp duties, costs of the surveyor, conveyancing, moving vans — before you even turn the handle on the front door, you are staring at a bill in excess of several thousand pounds. If this bill has left you eye to eye with the banking balance on a zero balance accounts book, the first thing going wrong will finish you off.

You lack an emergency fund

When you rent, a bursting pipe or broken boiler is the landlord’s problem. Once the home is yours, the buck stops with you. Financial pros recommend having three to six months of living expenses stashed away in a high-yield savings account. If your down payment wipes out your savings completely, you don't have the cushion you need to deal with the inevitable costs of home maintenance.

Your debt-to-income ratio is high

Lenders pay close attention to your ongoing commitments such as car finance, student loans and credit card balances. If you already have a big chunk of your monthly take home pay allocated towards debt repayments then tossing a mortgage into the mix will render you ‘house poor’. This is where a person owns a house but has absolutely no disposable income for vacationing, recreation or even socialising

You are relying on a ‘best-case’ interest rate

You're counting on a 'best-case' interest rate With the end of the ultra-low interest rate era, buyers will need to be prepared for fluctuation. If your budget only works if rates stay precisely where they are, then you're in danger. A truly prepared buyer should be able to withstand a slight uptick in monthly.

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