Think You’re Ready to Buy a Home?

Although most people dream of owning their own home, it’s important that you make sure that you are ready in all aspects of your life to be a homeowner. There are many benefits to paying a mortgage rather than rent to a landlord, but if you aren’t prepared for the responsibility, it can turn into more stress than it’s worth. Here are a few signs that you’re ready to buy a home.

You’re Financially Ready

If you’ve calculated your budget for the upfront down payment and subsequent mortgage payments, you’re probably ready to buy a home. Keep in mind that upfront money doesn’t only include the down payment but the closing costs as well. Although budgeting and planning for this payment may be trying at times, committing to and saving this amount means you’re likely ready to buy a home.

You Have a Strong Credit Score

Your credit score is one of the most important factors a lender will look at when deciding whether or not to approve your home loan application. However, if you regularly review your TransUnion, Experian, and Equifax credit reports and see a relatively healthy credit score, you have a good chance of your loan being accepted by your bank. Remember, it’s important that you’re making regular on-time payments, using less than 30 percent of your credit lines, and have a positive history with lenders.

You Have Been at your Job for At least 2 Years

You also need solid employment history, meaning being at a job for at least two years, for lenders to calculate your income and determine whether or not you can afford the loan you want. Fortunately, if you’ve been at your job for over two years, you should be in the clear for a loan and have enough job stability to pay your mortgage on time. Anything less than means you may benefit by waiting before buying a home.

You’re Not Planning on Moving Anytime Soon

It’s important that you plan to stay in the home you buy for at least five to ten years. If you sell in less than the five-year minimum, you risk losing money and might not have enough money to cover the closing costs. Also, if you’re buying a home, it’s essential that you choose an area that you enjoy living in. Buying a home isn’t like renting, you don’t get to relocate every few years with little effort.

You are Prepared to Take on More Responsibility

Owning a home comes with heightened responsibility. Buying a home means having the maturity to maintain the home and pay the mortgage payments on time. After all, if you’re unable to make your mortgage payments, you risk defaulting on your loan and the bank may seize your property.

You’ve Learned How to Apply for a Mortgage and Compared Different Lenders

The last way to know you are prepared to buy a home is if you are aware of how to apply for and obtain a mortgage. Two important factors in obtaining a mortgage are having good credit and a solid income, which we outlined above. If you feel confident in these areas, reach out to several lending institutions in your area and make appointments with them to discuss the next steps. Then you can compare which will best fit your needs and offer you the best rate.

When you find a home you’d like to buy, be sure to conduct a home inspection from a professional third-party inspector. JS Consulting Group serves Los Angeles, Riverside, San Bernardino, and Orange counties with a variety of home and commercial property inspection and consulting services. Contact us to discuss our services or book an appointment.