A Brief History of
Things that Show that You are Ready to Purchase a New House
Everyone dreams of owning a home at some point in their life. You find that around 64% of people in the US own homes and you should definitely join that list. By the end of this topic, you will discover more things that shows that you are ready to invest in a new house.
To start with, you will stick around. There is no point in buying a new house when your family won’t live in it. Like if your lifestyle makes you move to different parts of the world it will be better to rent a house. The best thing that you should do is to determine if you will stay before you decide to buy a house.
You can also know that you are ready when you have a good credit score. You find that you will need a good credit score for your mortgage loan to be approved by the bank. Like if you have a credit score of around 640 there high chances that you will get approved for a loan. Apart from that, 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.
You will also know that you are ready when you have a steady job. It is essential to note that working in a given company for many years will make you save enough money to buy a house. You find that most lenders would prefer to work with individuals who have worked in the same company for at least two years. This means that you can pay your loans without missing any payment.
Besides, when you have saved enough down payment. Remember that you will have to pay a down payment not unless you qualify for a no-down-payment mortgage. One thing that you need to understand is that down payment is always high because lenders believe that the higher the down payment the lower the chances of defaulting. Therefore, it is essential that you save enough to afford the higher rates of down payment.
The other sign is when you can afford the mortgage payment. It is essential to note that your mortgage lender will use your debt to income ration to determine your ability to manage monthly payment and repay debt. When you have a low debt to income ration, will mean that you will be in a position to manage your debts. You should make sure that you keep the ration below 36 because anything above that you may not qualify.