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.
To start with, you will stick around. I can say that it will be useless buying a new house when your family won’t live in it. For instance, if your lifestyle makes you move to different parts of the world, you will not need to buy a new house. For that matter, it is necessary to know whether you will want to stay or not.
Secondly, when you are a good credit score. You find that you will need a good credit score for your mortgage loan to be approved by the bank. For example, a credit score of around 640 will improve your chances of being approved for a mortgage. Besides, there is also a high chance that you will qualify for a loan if you have not missed more than a single payment within the past 12 months.
The next sign is when you have a steady job. You find that after working for several years in a given company, you have probably saved enough to purchase 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. You find that this means that you will be able to pay your loan without missing a single 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. Because of that, it will be essential that you save enough amount that can manage to pay the down payment.
Besides, you will also be ready when you can afford a down payment. You find that the 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. You should make sure that you keep the ration below 36 because anything above that you may not qualify.