Signs You're Ready for Home Ownership:
May 2 2017 Posted by Tracy Bennett
If you have always lived in a rental and dreamed of becoming a homeowner, you may not have the information to make that dream a reality. There are seven signs to help you determine if you’re ready for ownership:
Mortgage companies have requirements for qualification, including having a regular job that can cover the monthly payments. Is your employment secure? Do you make enough salary to afford a home and other expenses that come with it?
As part of the loan application process, lenders will assess your debt-to-income ratio. They do this in two different ways. First, they look at housing debts then assess your entire portfolio of debts, including any credit cards, auto loans and other personal debt you may have accumulated.
How Much You Can Afford
This category goes hand in hand with job security because you need to make enough money to afford a home. If your salary cannot support the home you aspire to, are you willing to compromise on size, location, etc.? Set priorities and work towards your long term goals.
If you are a master at creating a budget and sticking to it, then a mortgage can work for you. Keeping a budget shows lenders you have responsible spending habits and know how to save. These are important traits to have because home ownership involves unforeseen expenses.
The Down Payment
The minimum downpayment is 5%. With a down payment of 20 percent of a home's value you avoid paying default insurance premiums. If you have more than the normal 20 percent ready in your account, you prove to the lenders you are a good risk for lending. For qualifying on the different downpayment amounts differs, you should consult with a broker to understand these government rules.
You’re Good with Fixing Things
Being a homeowner has benefits and drawbacks. One inconvenience is home maintenance. If you’re prepared to fix some issues (even small ones) that crop up, that can help your decision to become a homeowner. It’s recommended everyone save yearly 1-3 percent of the home cost to cover any future repairs.
So are you truly ready to tackle a home loan? If so, pick up the phone and give Mortgage Architects a call today at 519-576-4869 or 1-866-896-8570 or firstname.lastname@example.org.