If the idea is spinning in your head, check these signs and stop doubting.
Transitioning from renter to homebuyer is not an easy task. Nowadays, buying a house is not everyone’s dream, but it is for many. Are you one of them? The idea of having a home of your own without worrying about paying rent is attractive to several and they look forward to the moment when they can finally acquire their longed home.
Either a house or an apartment, the truth is that it is a big step and that is why it is necessary to know if we are ready while taking all the necessary precautions.
If you are wondering if it is time to start, pay attention to the following signs:
- Do you know how much you can afford?
Do you have savings? Enough to cover the house mortgage. Overcommitting to a mortgage payment can leave you with very little money left at the end of the month for other things. Add all your monthly spendings, including rent, food, gas, electricity bill, and other discretionary expenses such as upcoming vacations. Once you have an estimated amount of what comes in and goes out, you can set the number you believe you can afford to spend on housing.
- Do you have several sources of income?
You should not only depend on your job, but try to get some extra money from other businesses. Most of these signs indicate not only economic stability but also maturity in knowing what is wanted.
Another thing to remember is that your bank account shouldn’t be zero after closing. A smart homebuyer should think in advance and have savings that could cover up to six months of living expenses on hand.
- Is your credit in good shape?
When you are thinking about buying a house, one of the most important things you should be prepared for is your credit score. This is the first thing that your lender will check for the approval of the mortgage loan.
You want to get your credit score as high as possible when aiming for a mortgage. The higher the score, the better the lending terms and rates. A credit score of 750 and up is generally considered excellent and will make you the most attractive borrower.
If you comply with the tips mentioned above, everything seems to indicate that you are prepared, but remember that it will not help if you end up choosing a loan that does not fit your lifestyle.
At Foremost Title & Escrow, our priority is your well being. We educate our clients to make the most out of their transactions. Visit our website and learn more about how can Foremost be the right fit for your first closing.
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