Are You Financially Ready to Purchase a Home?

By
Services for Real Estate Pros with Improve My Credit USA

Are You Financially Ready to Purchase a Home?

 

There are many factors to consider when determining whether you are ready to purchase a home; perhaps one of the most important is your financial state. Use these indicators to decide whether all signs point to “go.”

·         Your credit is in good shape. If you are even considering buying a home, this is a given. Having a great credit score and low debts will show that you are ready for the purchase process and the expenses that inevitably come after moving into a new home. Stay away from purchases during the loan process especially as this can change your debt to income ratios and ruin your loan eligibility.

·         You have a down payment. For a traditional loan, down payments can be as much as 20% and typically average around 10%. There are various other options for lower down payments these days but it’s always good to be prepared with enough down payment and expenses after moving in. 

You follow a budget. Having a budget and following it will help you be a responsible home owner. There are different expenses when you own a home than when you rent. Good planning skills will help you manage those costs.

·         You have a steady income and an emergency savings fund. These two things go hand in hand to show you have the funds to manage the monthly payments on a home. A steady income will ensure that you can pay your mortgage and related expenses. The emergency savings fund will give you some stability in case your steady income stream is interrupted for any reason.

 

If you evaluate the indicators and feel comfortable that you are in good shape in each area, you are likely ready to purchase a home. 

Posted by

Joe orsak

Chief Marketing Officer

Improve My Credit USA

281.914.4116 Main

832.239.5206 Direct

info@improvemycreditusa.com

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purchasing a home
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Rainer
106,903
Rob Marken
Bend River Realty - Bend, OR
25+ years experience in Bend

Great points for buyers.  These are all very important steps to becoming prepared for the home buying process.  Thanks for sharing. 

May 21, 2014 01:29 AM #1
Rainer
17,115
Joe Orsak
Improve My Credit USA - Humble, TX
Joe Orsak

Thanks Rob!  We always hope to provide some good info.

May 21, 2014 02:06 AM #2
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Rainer
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Joe Orsak

Joe Orsak
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