Is It The Right Time For You to Buy a House?

You’ve been renting for years and while it is nice to be free from the responsibility of maintaining a home and paying for repairs, the idea of paying money every month without any real investment is feeling less and less appealing. Not to mention that some mortgage payments are actually less expensive than a monthly rental. So how do you know when it is time to ditch the rental and invest in your own property? Your agent can help you with any questions you may  have about pre-approval for a mortgage loan, best areas to search for a home, and when to make an offer to buy a house. Take a look at these top considerations when thinking about buying your own home.

  1. Your Total Income. Run the numbers before you consider buying home. Take a look at the amount of money you bring home each month to help you decide what price level of mortgage you can afford. There are multiple free mortgage calculators online that can give you a rough idea of what a monthly mortgage would cost for a variety of loan lengths.
  1. Do you have money put away to use for a down payment? A mortgage lender will want you have to some money to pay down, at 5% of the home value before they will approve you for a loan. Even better would be a larger 20% down payment. If you have nothing saved back consider holding off on the house shopping until you have built up your savings.
  1. Your Occupation. How long have you been at your job? Mortgage lenders may look at you as a risk if you have been working at your present company for less than two years. A lender will average your income of 2 years when calculating the amount of money your are qualified to receive. It’s best to wait until you have a consistent job history before you buy a house.
  1. Your credit history and debt to income ratio will also be deciding factors in your loan eligibility. If you have a credit score below 700 and your debt is more than 43% of your monthly income chances are you won’t qualify for a mortgage loan. Get some of your other debts paid off to decrease your debt to income ratio which will help get you approved for a loan and on the right track to finding your new home.

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