5 Ways to Know if You're Ready to Buy a House
Buying a home is a big deal. While homeownership is rewarding and can build equity, it’s not a spur of the moment decision, but something that takes time and money. We may be a mortgage funding company, but we recognize that not everyone is ready to purchase their first home…your average college freshman probably doesn’t need to worry about a mortgage payment just yet.
Some people think that buying your first home when you’re 25-30 years old is a sweet spot, and while that may be true, whether or not you’re ready comes down to your life situation rather than your age.
Here are some indicators that you’re ready to buy your first home:
1. Your rent is out of control
It’s no secret that housing prices have been rising quite a bit the last couple of years, and rent is no exception. If your rent is continually rising, it might be time to invest in a home where your monthly payment is stable.
2. You have a solid credit score
While you can still get a home with a low credit score, you’ll likely have to pay higher rates and come up with a bigger down payment. If you have a good credit score, you’re in good shape to buy a home.
3. Your salary is sufficient
The general rule is that your mortgage payment should be less than 28% of your gross income. Check out our mortgage payment calculator to see how much your payment might be. If you’re making enough money to afford those payments, you are definitely in a good position to buy a house.
4. You can afford a down payment
The more you put down, the less you’ll have to pay. However, it’s not necessary to put down a large payment anymore. There are plenty of available down payment assistance programs that can get you into a home without forking over a small fortune.
5. You’re ready to settle down
If you’ve got the itch to move from place to place, buying a home probably isn’t the right option for you. However, if you know what you’re looking for and have found a place where you’d like to settle down for some time, buying a home is definitely preferable to renting one.
Buying a home is a big decision, but if you are in a place where you can take that next step, there are so many resources and help available to you. If you’re getting ready to purchase your first home, connect with one of our Loan Officers today and they can help you with your next steps.
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