Owning a home may be your dream, but in order for the purchase to be the happy and satisfying experience it was meant to be, you need to ensure that you are financially and mentally prepared for the responsibilities that come with it. Some people have a notion that home ownership is like renting, but with the power to have pets and paint the walls whatever color you like.
However, while these privileges are available to homeowners in most municipalities, they come with the responsibilities of a mortgage, taxes and home maintenance. Preparing for home ownership requires you to take critical stock of your finances and your expectations.
So… are you ready?
Crunch your numbers
What can you afford? It can be discouraging to find that your salary won’t stretch as far as the home you want to own. However, sacrificing a huge part of your income just to pay the mortgage can very quickly make home ownership a burden.
What is your debt-to-income ratio? This is something that lenders take very seriously. Your overall debt should not be more than 40% of your income, and your housing debt should not be more than 32%. Do the math before you shop.
Know your credit score
Your interest rate will be directly related to your FICO score. If your score is below 620, you’re going to want to clean up your credit before you apply.
Amass a down payment
This is one part we can’t help you with. Expect to need 5-20% of the purchase price for a down payment, and save accordingly.
There’s a lot to learn when buying a home.
Find an agent
We believe that with our experience and dedication to honest and ethical service, you’ll be happy to take advantage of our combined collective knowledge and experience in making home ownership a reality for thousands of families.
When in doubt, lean on us
From the first interview that determines your requirements to the moment that you receive the keys, we can help you with the complicated process of buying a home. Don’t hesitate to contact us to find out more about how we can make the home buying process easier!