Of course, we would love to work with you and would love your business, but we could never live with myself knowing we rushed my clients into homeownership before they were ready.
Not being ready for homeownership doesn’t mean you’ll never be a homeowner. It just means you may need a little more time to prepare before you jump into purchasing a home,.
Here are a few signs you may not be ready for homeownership:
1. You have a lot of debt
Your mortgage lender will look at your DTI (debt-to-income ratio) when you go through the pre-approval process, and if you have too much debt, your mortgage application may be denied. Having some level of debt won’t stop you from getting approved for a mortgage, but if you have a lot of debt compared to your income, you may want to sit tight and pay some of it off before you add a mortgage payment to your monthly bills.
2. You have little to no emergency savings
At some point, you will need to invest some money into your home to keep up with routine maintenance and normal wear and tear. What happens if you lose your job and don’t have steady income for 3 months? Building an emergency savings fund ensures you have a strong safety net to fall back on, just in case something unexpected happens in your life or to your home.
3. You have bad credit
Your credit has a huge impact on whether or not you’re able to qualify for a mortgage, what kind of home loan you can qualify for, and what kind of interest rate you’ll have to pay. The minimum credit requirement to purchase a home is typically a 580 minimum FICO score. If you need to repair your credit, take the time to do so before looking into homeownership!
4. You don’t have a stable job
Without consistent income, it could be very difficult to pay your mortgage. If you don’t feel confident in the stability your job, you may want to wait until you feel more secure to purchase a home! Most lenders prefer that you have worked consistently in your current field for at least two years, as job stability is essential to get approved for a home loan.
Still not sure if you’re ready for homeownership? Send us a message and we’d love to answer all your questions!
Photo By: Every Angle Photography