Buying your first home is a big deal. If you’re considering taking this significant step, you’ll want to ensure you’re fully prepared. In this blog post, we’ll explore four crucial signs that indicate you’re ready for your first home purchase.
1. Sufficient Down Payment
To buy your first home, you need at least a 5% down payment. Additionally, set aside about 1.5% of the purchase price for closing costs. Whether you’ve saved up the funds independently or received a generous gift from a family member, having a positive cash flow is a good sign.
2. Established Credit History
Building a credit score takes time. Lenders want to see a history of responsible borrowing, typically two trade lines, maintained for at least two years with a minimum amount of $2000. If you’ve had credit challenges in the past, don’t worry; a co-signor can help.
3. Stable Income
To secure a mortgage, you must demonstrate the ability to make consistent payments. A permanent full-time position, preferably past probation, is ideal. If your income varies, a two-year history can support your application. Aim to keep homeownership costs under one-third of your gross income to maintain financial stability.
4. Consultation with a Mortgage Professional
Navigating the process of buying your first home can be overwhelming. Start by seeking a preapproval from a mortgage professional. Discuss your financial situation, down payment options, credit score, income, and liabilities. This step will help determine the mortgage you can qualify for, making your dream of homeownership a reality.
When it comes to buying your first home, preparation is key. These four signs—having a sufficient down payment, established credit, stable income, and professional guidance—indicate that you’re ready to embark on this exciting journey. If you believe you meet these criteria, connect with us to start the process of buying your first home. We’re here to assist you every step of the way.
Contributed by Sabeena Bubber – reach out to Sabeena for more info here.
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