Six Signs It is Time to Purchase your First Home
Buying your first home can be both exciting and nerve-wracking. Do you when you are ready to make that purchase? Below are some signs it might be time to purchase your first home:
You can Afford a Down Payment
When purchasing a house, you will have to deal with some upfront costs with the down payment being the major one. Depending on the kind of mortgage you get, you might need to put between 3% and 20% down payment. But, some kinds of mortgage loans will allow for 100% financing. A professional sia realtor can help you explore your options.
You Have an Impressive Credit Score
Although having a perfect credit is not a requirement to get approved for a mortgage loan, having a credit score of at least 640 will increase your odds of getting approved. A credit score of at least 580 will make you qualified for an FHA loan with a down payment of 3.5%. However, mortgage lenders look out more than just your credit score. They will also see if you have a good credit history. Thus, if you several missed payments in the past twelve months, this may reduce your chances of getting approved for a mortgage.
You can Afford your Monthly Mortgage Payment
Lenders will determine how much home you can afford based on your debt-to-income ratio. Typically, your ratio must less than 36%. In case you are currently renting a house, your monthly mortgage payment might be close to your current rental payment.
You have a Stable Job
If you have been working in the same company for at least two years, your financial standing can be stable enough to take out a mortgage. Also, you will have a higher chance of getting approved for a loan if you have more than two years of steady employment. If you have a solid employment history, this could indicate you are ready to purchase a house. Know how much home you can afford where to buy through the sia ca map.
Your Family is Growing
If you have children, you may want to settle down into a bigger home in a quiet neighborhood. Because your children will not want to transfer to another school and leave their friends behind, buying a home can be a more sensible option. As your family grows, you want to let them live in a comfortable space.
You are Tired of Renting
Renting a house can be exhausting. You cannot make any improvements and you pay someone else’s mortgage payment. But, homeownership comes with a sense of pride.