Helpful Mortgage And Real Estate Advice

How Do I Know If I’m Ready To Buy A Home?

By on November 11, 2013 in Home Buying Advice

When buying a house, a buyer should understand what he or she wants out of the experience; furthermore, a shopper should understand if he or she can truly afford a mortgage. With this in mind, Here are four things one should ask themselves when they want to know if they are ready for a mortgage.

Can I afford the payment?

Right off the bat, a shopper should understand if he or she can truly afford the payment. Now, to afford a house does not mean a buyer can make the payments. It means that a buyer looking at a home will have no trouble making payments without struggling financially. All too often, an excited buyer will overpay and end up with a crippling mortgage payment that hurts his or her long-term financial future.

Is my income stable enough?

When taking on a mortgage, a borrower must know that he or she will not lose their job in the near future. Without employment, an individual will have a difficult time in making timely payments. Ideally, when taking on a large loan like this, a borrower should have been at his or her job for a long time.

Is my credit score adequate?

When a person has a low credit score, they will pay a higher rate than people with a score over 750. If a potential borrower has a low score, he or she should consider trying to fix their credit profile and apply for a loan in the future. With this tip, the owner of a house will save thousands of dollars in interest fees over the life of the loan.

Do I have other debts that I should take care of first? Often, a working individual will have credit card debt or school loans. With these loans, a person will have to make monthly payments. In fact, to pay them off quickly, a consumer will have to pay more than the minimum every month. Without this step, a borrower will take years to pay off a loan. A serious borrower must consider looking at other debts and paying them off before applying for a home loan.

With these four tips, a borrower can determine if he or she truly needs the mortgage or should wait until better times. Remember, this is a big step and a smart consumer will save a lot of money if he or she gets a loan at the right time.

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About the Author

About the Author: Jessica Lucas is the managing editor for Mortgage Home Base, a top real estate finance blog dedicated to helping borrowers and home buyers understand the home loan process. Follow Jessica on Google +, and share your comments here. .
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