Am I Ready to Buy a House?

You've saved up for a down payment and drawn up a wish list of what you’re looking for in a new home, but getting cold feet. How do you know if you’re ready to buy a house?

It’s normal to feel hesitant about going through with what may be the biggest purchase of your life. To help put you at ease, we’ve compiled a list of things to consider before buying a home.

Can I afford to buy a house?

Before viewing properties, remember that purchasing a home will cost more than just the down payment. You’ll also need to cover closing costs, which typically run at 2-4 percent of the total purchase. Ideal Credit Union can help you save on a new home purchase with reduced origination costs. Pay no more than $995 in origination on your next home purchase or refinance. Learn More!

Can I afford the monthly mortgage?

Most lending companies will grant a loan to a homebuyer if the monthly mortgage payments do not push the buyer’s debt-to-income ratio above the recommended 43 percent. Work out the total for your pre-mortgage debt before applying for a loan so you have an idea of how much house you can afford.

Is my credit score high enough? 

Most lenders will only grant a mortgage to borrowers with a credit score of 650 or higher. If your credit score is lower than what you’d like, you can boost it by being super-careful about paying your bills on time, paying credit card bills in full each month, and keeping credit utilization low.

Do I have a plan in place for repairs?

When a renter has a leaky faucet, they call the landlord and the problem becomes theirs. When a homeowner has a leaky faucet, it’s their problem. They can either fix it or hire someone to do the job, but it’s a good idea to have a plan in place before the first thing in a new home needs fixing. If you’re handy enough to make repairs on your own, it’s smart to have a small collection of tools for necessary repairs before purchasing a home. 

If you’re ready to get started on your home loan application, make an appointment with Ideal CU today to hear about our many home loan options.