Are You Ready to Own a Home?

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How do you know whether you’re ready to buy a home? This question was sent to us by a new client who was trying to gauge his own preparedness for homeownership.

If you’re asking yourself this same question, I’ve got some things for you to consider. To determine if you’re ready to purchase a home, you’ll need to ask yourself a few things first.

1. Do you have a steady source of income? Basically, you need to consider whether you know you’ll be able to consistently afford the costs associated with not only buying a home, but with homeownership as well. If you’ve been regularly employed for the past two or three years, you are probably in the clear.

2. Is your current income reliable? This is important for similar reasons as the first question, but also because lenders like to see stable income when approving you for a loan. You also need to seriously consider whether you’ll be able to commit to your monthly mortgage payments.

3. Do you have a good record of paying your bills? This may sound silly, but really reflect on this. A mortgage payment is going to be a sizeable monthly bill. If you have frequently had issues paying bills in the past, you may want to consider the obligation of having a monthly mortgage.

There are things that come up in homeownership that you don’t experience when renting.

 

4. Do you have enough money for a down payment? There are certainly programs out there that will allow you to make a minimal down payment. However, the more money you put down, the better loan product you’ll likely get.

5. Do you have any outstanding debts? Lenders look at outstanding payments to determine whether you’re worthy in terms of credit. You also don’t want to stretch yourself thin by adding yet another payment if you already have a lot of debt.

6. Can you pay a monthly mortgage as well as the additional costs? Even if you can afford the mortgage, can you afford the additional costs of a specific home? There are things that come up in homeownership that you don’t experience when renting. Landscaping needs to be maintained and if you have a pool, that will also need to be taken care of. Things like these need to be taken into consideration before you make a commitment.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

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