You may be emotionally ready to buy a house, but are you prepared. Always look for a high quality mortgage company. They have seen people who fall in both categories. If you carefully evaluate your situation, you will know if you are ready to find a mortgage company to purchase a home.
You feel confident in the house you want to buy
A house is not a pair of jeans you can return or exchange once you try them out and change your mind. Some agreements do have buyer’s remorse clauses, but the mortgage lender has gotten away from it. Before you close on a home make sure:
- There aren’t any major issues
• You are sure it’s the home you love
• You plan to be in that neighborhood/city for a while
• It’s in the budget
• You are willing to pay
No major outstanding debt is weighing you down
By now, you know how major the responsibility of managing a home is. Make sure you tackle other debts before taking on a mortgage. In fact, your loan officer may suggest or require paying off certain debt before approving your application. Making sure every dime isn’t going to debt increases the likelihood of keeping your home.
You have an emergency fund or disposable income
This is another good reason to deuce debt; incidentals happen. You didn’t notice how costly they were when you could just call on landlord or let your parents handle it. When you are on your own, you will need extra money coming in or set aside in an account. Disposable income can also help you pay down your mortgage loan faster, reducing interest and years of payments.
You are in it for the long haul
Purchasing a home is final—at least for a little while—if you don’t want instability and financial damage. Be ready to stay in the home for at least five years. If not, you face paying mostly interest without giving yourself time to gain equity. You will also need to cough up more thousands for closing costs on another home when you move.