6 Signs You Are Ready to Buy a Home
Buying a home is a great accomplishment, but it’s also a big commitment. It’s important to make sure you are ready to become a homeowner and to understand everything from your financial status to ensure you can afford the purchase, to being able to properly take care of the home. Here are some signs that you are ready to buy a home and should start your North Georgia home search now!
6 Signs You Are Ready to Buy a Home
- Stable Employment – To qualify for a mortgage and meet the monthly payment obligation, it is important to have a stable job and long term employment record. This is a sign of income reliability and shows your local mortgage lender that you have a way to pay for the home loan now and in the future.
- Sufficient Income –Contact a mortgage specialist to get pre-approved to buy a home to ensure you can afford the mortgage payments and living expenses. An experienced lender will assess your income, debt, and expenses, to determine how much you can afford to spend on a home.
- Strong Credit Score -Maintaining a good credit score is crucial to get the best possible mortgage terms when buying a home. The better the credit history, the lower the interest rate and more favorable the terms will be for your home loan. Having a healthy credit score can make a huge difference in your interest rate which directly affects the amount of your monthly mortgage payment.
- Manageable Debt-to-Income Ratio -Mortgage lenders use your debt-to-income ratio (DTI) to determine your ability to manage your existing monthly payment obligations and repay your current loans and credit accounts. Your DTI is determined by dividing your monthly debt payments by your gross monthly income.
- Control Over Existing Debts -Effectively managing existing debts by making on-time payments and limiting credit purchases indicates financial responsibility and readiness to potential mortgage lenders and allows them to better consider and help approve your home loan application.
- Pre-approval From a Financial Institution -When you are truly ready to purchase a home, one of the first steps is to obtain a pre-approval from your lender to buy. This also lets the home seller know that you are ready to buy and are serious about considering their home.
In addition, it is crucial for homeowners to understand that there are several other costs associated with homeownership. Here are some additional expenses to consider:
- Yearly Property Taxes
- Homeowner’s Insurance
- Home Maintenance and Repairs
- Emergency Fund Contributions/Savings
Are You Ready to Start Searching for the Home of Your Dreams?
Contact the team at Southern Select Properties to start the search for your dream home in North Georgia. Whether you are a first-time buyer, want to build a new home, or simply want to see how much you can afford to spend on a home, we are here to help. Your path to owning a home starts at Southern Select Properties. Let’s get started today!
