Is purchasing a home on your mind? Here are some signs you're ready to buy a home.
You have built up your savings
If you've built up your savings account, that is a telltale sign you're ready to buy a home. You can use your savings for your down payment, which will make a huge difference in the mortgage and purchase process. A down payment can help you increase the equity you own in your home once you purchase. Furthermore, a down payment can give you a leg up when you're making offers because it can assure sellers of your ability to secure financing.
Your credit is in good shape
If you've been working on building your credit and it has reached a score of 740 or greater, then this is another sign you're ready to apply for a mortgage. The better your credit score is, the smoother your loan application and the lower your interest rate will be.
You're planning to stay in the same place for a while
Purchasing a home is a long-term investment. Not only will you be taking on the debt involved with purchasing a home, but also paying closing costs. If you're not planning to stay in the same place for more than a year or two, it might not be worth it to pay the closing costs associated with purchasing a home when you'll just end up paying them again when you move. If you're ready to commit to one location for a while, then that's a sure sign that you're ready to buy a home.
You're ready to take on the responsibility of homeownership
Owning a home is a serious commitment. When you purchase a home, the reality is that you'll be taking on a large amount of debt that you'll have to commit yourself to making monthly payments towards. Furthermore, as a homeowner, you'll be responsible for any repairs, maintenance, or damage to your home.
Now, if you're reading this list and all of these things don't apply to you, don't worry! While these are definitely nice things to have going into the home buying process, you can definitely make buying your dream home a reality without them. If you're ready to buy your dream home, you can start your mortgage and prequalification process with the P1FCU Mortgage team here.