Many times people have difficultly determining whether they are ready to buy. This is true for renters and people who need to move-up or down-size. There are signs that may help you determine whether you are a ready buyer:
· If you are person who is familiar with the current market conditions, paying close attention to how much houses are listed for in desired neighborhoods and a have realistic understanding how much your new home will cost you.
· Have money to cover 3 to 20% down payment plus closing cost. Closing cost will run between 2 and 7% of the value of the property.
· Have a good understand on how much you can afford. Your income/debt ratio should probably be no more than 28/36% of gross income.
· Understand and have the capability to pay for additional expenses that come with ownership of a home, such as, homeowners insurance, utility bills, and maintenance cost, etc.
· Have a good credit score. Credit will be a major factor in determining your interest rate. The higher your credit score the better.
· Haven’t lately made major purchases, such as, vehicle. This can lower the amount of loan you can get and/or made it more difficult to purchase your new home.
Comments(1)