How to Know When You’re Ready to Buy a Home
Purchasing a home is easily one of the biggest investments a person can make. There are many different factors that affect the process, but it’s important to make sure you’re in the right place financially and that the right time to purchase your dream home.
If you’re considering buying a home, here are a few questions to ask yourself:
Do you have a steady income?
If you’re thinking about owning your own home, it’s important to know you can make every mortgage payment on time each month. Having a steady job can help you qualify for the mortgage loan you’re wanting, but make sure you can afford your new home not only right now, but in the future.
Is your credit score in good standing?
Having a good to great credit score can help you qualify for a lower interest rate. Not only is this important for home buying, but it’s important for almost every big purchase you will make. If your credit score is not in check, take the necessary steps to increase your score!
Do you have a suitable savings and emergency fund?
Before making one of the biggest purchases of your life, create a solid savings AND emergency fund. This savings should be separate from the money you plan to use for the down payment on your home. Experts often quote having at least 3—6 months’ of living expenses saved in your emergency fund. Having this as backup can help make sure you are ready for the unexpected.
Do you have a down payment?
Be prepared for your down payment. Savings count! Higher down payments, can help secure your home while also giving you a lower monthly payment.
Pro Tip: If you’re a teacher, firefighter, law enforcement officer, current military member (reserve and active duty), civil service worker, or healthcare and emergency medical professional you can see qualify for the Community Contributor Mortgage.
Are you planning on living in the home long term?
Buying a home is a commitment. Make sure you’re choosing a home in an area that will benefit you for many years to come. Ask yourself: Is this the right amount of space (think about the future) and is it in a location that fits your lifestyle?
If you’re unsure whether or not the time is right for you to own a home, we can help. The Credit Union offers assistance to help you choose the option right for you, your family, and your future. Let us be a part of your home buying adventure!
Want a first-hand account of finding the perfect home? Read about one of our other contributors, T.J., and his house hunting experience.
Do you have anything you’d like to share about your home buying journey? Let us know in the comments below!