You may have heard that interest rates on home loans are still affordable. If it’s your dream to buy a home, you may think that now is the time. However, you have a lot to consider before you answer that question.
Look at Your Credit
Your first step is to look at your credit. If it’s not in good shape, you’ll have to work on it before you qualify for a home loan. If there is a lot wrong with it and it happened recently, you had better delay your home-buying plans until next year. Most lenders want to see at least 12 months of clean credit.
Check Your Savings
Do you have money in savings? If not, you need to work on that before you look at buying a house. You may need the money for a down payment. Even if you get into a program that finances all of the price of the home, you’ll still need money for moving costs, such as setting up utilities and transporting your stuff. You may not realize just how much it costs to move to a new location.
Look at Your Budget
Do you have the budget of a homeowner? What this means is that you can pay your bills and have money left over. You put money in savings and are frugal with your funds when needed. You don’t have credit cards maxed out because you view them as money for emergencies rather than everyday use.
If you look at your budget and finances and you don’t see that it looks like a homeowner, you may need to make some changes. Buying a home is a major investment, and you need to be prepared. Work on getting into the mindset of a homeowner before you take the leap.
