Things that Show that You are Ready to Purchase 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. Remember that about 64% of people in the US own homes and you would like to join that list. Let us look at some of the things that will show that you are ready to invest in a new house.
First of all, you will stick around. I can say that it will be useless buying a new house when your family won’t live in it. Someone who keeps traveling to different parts of the world does not need to purchase a new house but renting it is better. For that matter, it is necessary to know whether you will want to stay or not.
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. One thing with most lenders is that they prefer to work with the people who have worked in the same company for at least 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. Not unless you qualify for a no-down-payment mortgage, you will have to pay for a down payment. One thing that you need to understand is that down payment is always high because lenders believe that the higher the down payment the lower the chances of defaulting. For that matter, you will only be ready after you have saved enough for the down payment.
The other sign is when you can afford the mortgage payment. It is essential to note that your mortgage lender will use your debt to income ration to determine your ability to manage monthly payment and repay debt. When you have a low debt to income ration, will mean that you will be in a position to manage your debts. It is essential to keep the ratio below 36 because above that you may not qualify.