If you are on the fence about becoming a homeowner, you may be questioning if you are even ready to take the next step. At A&M Home Builders, we understand how daunting the home buying process can be, which is why we have listed 5 useful tips on how to know if you are ready to become a homeowner.
Tip #1: Good Credit
Your credit score has a big impact on what type of mortgage you can qualify for. This is why it’s important to raise your score as much as possible before you apply for a mortgage. You can increase your credit by paying off high-interest loans, avoid opening new lines of credit, and by always making a loan payment on time.
Tip #2: Can Afford Your Down Payment
A down payment is a specific percentage of your home’s overall value. Making sure you have enough money saved so you can pay your down payment is important. Be sure and save a minimum of 20% of your home’s total cost, that way you can avoid paying additional fees such as Private Mortgage Insurance (PMI).
Tip #3: Have A Stable Income
Having a stable income is important to mortgage lenders because they want to make sure you are financially in good standing to pay off your loan. Therefore, if you are considering changing careers, wait until after you have closed on your home since some banks prefer you to be employed with a company for a minimum of two years.
Tip #4: Can Afford Monthly Payments
If you have massive amounts of debt, it may be difficult for you to make monthly payments on your mortgage. Having enough money saved to not only pay for your down payment but also pay your mortgage every month shows you are financially prepared to be a homeowner.
Tip #5: Are Looking To Settle Down
Knowing you are ready to settle down is a good indication that you are ready to purchase a new home. Buying a home is a major financial investment and it can take years to pay off. If you have a stable job and are not planning on moving for about 4-5 years, then you may be ready to reap the benefits of homeownership.
Contact Us
If you would like to learn more tips on how to know if you are ready to purchase a home or if you are interested in finding out what homes we have available, please contact your local Clay County contractors with A&M Home Builders at 904.955.1758.
