You have spent years stalking neighborhoods and homes on zillow. Your friends and framily have been talking about it! Your neighbors are moving. Is it time for you to purchase a home? Here are 6 signs you might be ready to buy a home!
Before you start talking to lenders and filling out pre approval applications, take a look at this list of 6 signs that you are ready to purchase and see if you tick any of these boxes!
01. History of managing debt well: Do you make your payments on time? Having this positive history will reflect well in the lenders eyes. Keeping your accounts current and balances around 30% will show the lenders you have a good practice when it comes to managing debt.
02. You have a specific home or neighborhood you picture yourself in: Narrowing down the location will keep you from getting overwhelmed by multiple options in a in multiple neighborhoods. This may not happen immediately. Exploring multiple neighborhoods will take time, but this will help you understand what your budget will allow for each neighborhood. Also, knowing what style of home you are looking for will help you narrow down the neighborhoods as well!
03. You are ready to pay a down payment and closing costs: There are costs associated with purchasing a home outside of your down payment. These are called “Closing costs”. Understanding what to budget for is a huge part of knowing if you’re ready to purchase or not. Talking to your real estate agent and your lender will help you understand what it will cost you to purchase a home.
Understanding what to budget for is a huge part of knowing if you’re ready to purchase or not.
04. You have a good credit score: Most loans require a minimum credit score of 620. There are some loans that have lower requirements. Talking to your lender will allow you to know which loans you qualify for and is right for you. The higher your credit score, the lower your interest rate.
05. You have eliminated most debt: The amount of debt you carry will directly affect what your lender will be able to approve you for. Eliminating the bulk of your debt will allow to lender to approve you for more home! Be sure to not close any credit accounts though. This will lower your credit score, which we do not want!
06. You have a stable job: Lenders like to see a history of stability. A good rule of thumb is to be in the same industry or the same job for at least 2 years. This shows the lender that you will be able to remain in a job that will allow you to carry the mortgage payment.
Think you may be ready to start the home search process? Click here for more information and to set up a meeting with a Sage & Cedar agent! They will take you through the process, talk closing costs, the current market, and so much more!
Or if you want to start your online search, click here!