5 SIGNS YOU ARE READY TO BUY A HOME!!

Owning a home is the biggest asset of a person and also the biggest liability. While buying a home can be very exciting; it also involves a huge commitment. Hence before buying a house of your own consider if you have the following signs in you.

1.       RELIABLE INCOME: When buying a home you need to take mortgage, living paycheck to paycheck can be very tight and if something unexpected comes up it might be very difficult to pay the mortgage. Before approving you for a mortgage the lender will always confirm if you have a steady income source to pay your mortgage, property tax etc

2.       DOWN PAYMENT: Do you have at least 5% of a down payment ready to apply for a home loan? A mortgage will be approved only if you have some deposit saved from your own pocket. Not only would you require a deposit but also other costs like legal fees, property tax adjustments, and moving expenses etc. Basically, the lender is looking to see that you have enough funds on hand so you won’t be short on closing date. The lender will ensure you’re in the healthy cash-to-debt range, especially if you’re trying to qualify to buy your first home. 

3.       DEBTS: Before buying your home or applying for a mortgage make sure that you are not drowning in debt. The more debt you have, the less chances of you getting approved.

4.       THE CALCULATION OF NUMBERS: While you can usually depend on your mortgage professional to provide you with the information you need to make an informed decision, they can’t make the choice for you. It is still up to you to determine which mortgage and property option fits your lifestyle. Be prepared for a mortgage payment, condo fees if applicable, property taxes, property maintenance and repair costs, house insurance and more. Be sure you’ve done your research before you apply for a mortgage pre-approval.

5.       CO-SIGNER: A co-signer comes into the picture when the lender needs additional application strength. It is always wise to delay home ownership for some time and get qualified on your own rather than getting a co-signer. However if you don’t want to delay the purchase of your home then at least have an exit strategy to eventually get your co-signer off the mortgage so you can make decisions about your home without the signed consent of your co-signer.

Buying a home should be a happy experience. Be confident in the choice you make and decide only when you are ready.

Editor: Neha Charan