Owning your own home is a huge milestone. It’s probably the most expensive purchase you will ever make, and a huge commitment to take on for a significant chunk of your life. So, it’s important that you wait until the time is right.
With that in mind, here are some sure signs you’re ready to own your own home:
1. You feel ready.
A lot of people rush into buying their first home because they think it’s what they should do, but it’s ok to wait a while if you’re not ready. Maybe you want to spend your money on around the world trip or you’re not ready to give up partying quite so often yet, or maybe you just don’t feel ready for that kind of responsibility – that’s perfectly ok!
If you’re still young, you have plenty of time to get on the property ladder, and if you wait until you’re truly ready, you’re less likely to run into problems.
2. You have money in the bank.
In order to get on the property ladder, you normally need a deposit. The higher the deposit, the better deal you can get and the less you will need to pay out on a mortgage each month. So, if you’ve been able to save over the years and you have plenty of money in the bank, it’s a good sign that you’re ready to own a home.
3. You have a good credit score.
As any mortgage broker will tell you, it’s very difficult, if not impossible, to be granted a VA loan if your credit score is poor. In fact, you usually need to have a score of 620 or above to even be considered. If you don’t currently have a good credit score, it’s probably best to hold off on that mortgage application.
In the meantime, you can work on getting your credit under control by paying off debts, ensuring that you pay bills on time and paying cash instead of racking up a bigger balance on your credit cards. It may take time, but it will be worth it in the end.
4. You have an excellent debt-to-income ratio.
A good debt-to-income ratio is where you have more money coming in than you have going out. Most lenders take this into account when assessing your application, and it’s pretty obvious that you aren’t going to be able to manage paying a mortgage when you already spend more than you earn!
5. You have a steady income.
Paying off a house can be pretty scary when you have an income that fluctuates wildly, which is why it is usually better to wait until you have a steady source of income. Apart from that, lenders tend to look more favorably on applicants who have steady employment or another source of regular income such as disability compensation that enables them to make regular payments.
6. You’re sick of renting.
If you’re sick of renting an endless stream of properties that aren’t exactly The Ritz, if you’re tired of having to move house every few months; if you have had all you can take from poor landlords who ignore the issues you’re having, and you have spotted the signs above, it may be time to get on the property ladder.
I mean, the average home is 37.7 percent cheaper than renting, right!
Time to find your dream home?