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Homeownership

4 Signs You Are Ready For Homeownership

Are you ready for Homeownership? While most people know the main things they need to buy a home, such as stable employment and enough money for a down payment, there are a few other factors that may help you realize you are ready, perhaps even earlier than you thought!

You should have more funds available than the minimum of a down payment

This one may seem obvious, but it’s something that people may not realize until they actually think about it. It’s very difficult to afford a home if you only have enough money for a down payment and then find yourself scrambling for day-to-day living after that.

If you have enough money saved up (more than the minimum needed for a down payment), you may be ready to start house-hunting.

Your credit score is good

This might seem obvious at first glance, however, if you don’t have a good credit score, chances increase that you could be declined altogether of stuck with a higher interest rate and thus end up paying higher mortgage payments. If you have less-than-optimal credit score, working with a mortgage professional can help you get on the right track in the shortest time possible. Sometimes a few subtle changes can bump a credit score from “meh” to “yahoo” in a few shore months.

Breaking the bank isn’t in your future plans

Do you plan on buying two new vehicles in the next two years?  Are you thinking of starting a family? Are you considering going back to school?

Although you may think you can afford to purchase a home right now, it’s extremely important to think about one, two, and five years down the road. If you know that you aren’t planning on incurring big expenses that you need to factor into your budget anytime soon, then that’s something that may help you decide to a buy a home.

You are disciplined

You must have a limit that you’re willing to spend. Sitting down with a mortgage broker and analyzing your finances is crucial. It’s important that you know costs associated with buying a home and what the maximum amount is that you can afford without experiencing financial struggles. Important: This is not the amount that you are told is your max!

This is the amount that you calculate as your max based on your current monthly budget and savings plan. It is up to you (with the help of a mortgage broker) to reel things back in and make sure that you aren’t getting into something that affects the long-term livelihood of a well thought out budget or saving plan.

Conclusion

These are just four signs that you may be ready to purchase a home. If you are seriously considering buying or selling, talking with one of our experienced Mortgage Advisors can help guide you on the right path to a successful real estate transaction. Also be sure to read 10 common costs of owning a home. Contact us today!

Original Article – Dominion Lending Centres – March 1, 2018

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