Buying a home is one of the most significant transactions of someone’s life, and there are a few considerations that every first-time homebuyer should take into account before starting the process of buying a home. This week, we’re outlining a few questions to ask yourself to determine if you’re ready for home ownership.
What’s Your Credit Like?
While there is much debate around what credit score will get you approved for a mortgage, the ideal number for a credit score is above 700. Banks will comb through your credit report when you apply for a loan. Make sure there are no surprises that could hinder your eligibility down the road and that your debt-to-income ratio isn’t too high.
Are You Prepared For The Unseen Costs Of Home Ownership
Expect to spend about 5% of the purchase price of your home on repairs, maintenance, and other expenses you may not anticipate. Appliances, specialist service calls, and landscaping are just a few random expenses that will come up after purchasing a home. Furnishing a home, covering moving costs, and various insurance plans will also add up quickly.
Do You Know What You Want?
You should have a solid idea of what you’re looking for in terms of space, area, and commute time. While you probably won’t find a home that matches every single criterion you have,
Is Your Income Stable?
Job security is an important factor to consider. If you’re at a job you love, making good money, and don’t anticipate any significant career changes in the near future, you’re probably in good shape to start considering home ownership. It also may be a good idea to talk to an accountant to ensure that you are entirely financially comfortable with buying a home.
Still trying to figure out if you’re ready for one of the most important transactions of your life? Contact us today!