The Top Signs You are Ready to Buy a New House
One thing that you need to know is that it is everyone’s dream to own a home at one point in their life. You find that around 64% of people in the US own homes and you should definitely join that list. Let us look at some of the things that will show that you are ready to invest in a new house.
One of the signs is that you will stick around. There is no point in buying a new house when your family won’t live in it. Like if your lifestyle makes you move to different parts of the world it will be better to rent a house. The best thing that you should do is to determine if you will stay before you decide to buy a house.
You can also know that you are ready when you have a good credit score. One thing that you need to understand is that you will need a good credit score for the bank to approve your mortgage loan. Like if you have a credit score of around 640 there high chances that you will get approved for a loan. Not only that but there is also high odds of being approved if you have not missed any single payment for the last 12 months.
The next sign is when you have a steady job. After you have worked in a company for several years, you have probably saved enough to buy a house. It is essential to note that most of the lenders prefer to work with the person who has worked in the same company for around two years. One good thing with steady house and income is that it will convince the lenders that you will be able to pay the loan without missing any payment.
Besides, when you have enough down payment. You should know that you will have to pay down payment unless you qualify for a no-down-payment mortgage. You should know that down payment is always higher as this lower the chances of defaulting. Therefore, it is essential that you save enough to afford the higher rates of down payment.
Apart from that, when you can afford the mortgage payment. One thing that you need to know is that your mortgage lender will use your debt to income ration to determine your ability to manage monthly payment and repay debt. For that matter, with a low debt to income ratio will mean that you can manage your debts. It is essential to keep the ratio below 36 because above that you may not qualify.