Buying a home is a big step and a serious commitment. The sheer gravity of making a decision that big is what often holds a person back from taking the plunge and purchasing their own home. Still, on the opposite end of the spectrum, there are also a lot of people who become so convinced that they’re ready, or they simply get so eager to own their own home, that they jump blindly into the process much earlier before they should. So how do you know if you are really ready to buy your first home? Here are a few indicators.
1. You’re ready to make the commitment. Buying a house can mean getting locked into a thirty year mortgage, so if you’re sure you can handle such a long-term responsibility, that is a good first step.
2. You have a good credit score. You will need to maintain a respectable credit score before most mortgage companies will even consider giving you a loan. Having a good credit scare may even help you get better interest rates on your loan. However, even if you have a lower credit score, it won’t hurt to speak with a mortgage lender to know what you may be able to qualify for.
3. You have a good handle on your existing debt. Before you even think about taking on a big debt like a mortgage, you should take a look at how much you already owe to other creditors. Make sure you have all your other existing debt (credit card bills, other bills) under control before you start looking for lenders.
4. You have enough money saved for a downpayment. Before you qualify for a loan, most lenders will want to make sure that you can afford to pay the downpayment on a new home. This is not something that you can put on a credit card—you will need to have real, accessible funds. If you don’t have enough money saved up, there is no better time to start saving than RIGHT NOW.
5. You have a stable and steady income. Remember that once you purchase a home, you will need to make mortgage payments EVERY MONTH. If you have a steady source of income that you can count on, this will ensure that you can meet those payments and pay your bills on time each month.
If you are planning to buy a home, let The Incorvaia Team make the process as easy as possible for you. Call us at 440-879-7130 today!