Before you buy your first home, you should be asking yourself that very question. According to the Baltimore HUD Homes Blog, here are six indicators you can use to find out if now really is the best time to be buying your first home:
1. You Have Stable Employment
Before jumping into the purchase of a home, your cash flow should be stable and you should have a solid employment history that shows at least two years of steady income.
2. Your Savings are In Order
Most lenders want to see that you have at least three to five months of savings. By having a reserve fund, you'll be able to weather the rough patches without going into debt.
3. Your Debt Is Limited
Before you buy your first house, make sure your debt is under control. Ideally, your monthly debt payments - including your mortgage - will be less than 38% of your gross income.
4. Your Credit Score is Healthy
With healthy credit, you'll not only increase your likelihood of obtaining a mortgage from a quality lender, but also qualify for lower interest rates.
5. You Have a Down Payment
Having a good down payment of at least 10-20 percent of the house price will show lenders that you're a serious buyer capable of saving and willing to invest in a home.
6. Your Family Needs It
Whether you're expecting a new baby, running out of room or just ready for the freedom of home ownership, you should have a reason for wanting to own a home.
Read the entire article.
Comments(0)