Are you contemplating becoming a homeowner for the first time? It’s a big step, and one that can seem pretty intimidating. To help put you at ease, we’ve compiled a list of questions to ask yourself before buying a new 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, as well as moving costs and possibly new furniture and renovations for your new home.
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.
Am I ready to settle down?
Buyers who don’t plan on staying in their homes long-term may end up incurring a loss. Consider factors like your career, family planning and evolving demographics of a neighborhood when trying to answer this question.
Is my credit score high enough?
Most lenders will only grant a mortgage to borrowers with a credit score of 620 or higher. If your score doesn’t make the cut, 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 own 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, you’ll need to be willing to give up some free time to tend to such things. Otherwise, it’s best to have a tidy sum put away to pay for necessary repairs before purchasing a home.
Join Ideal on July 16th to learn the ins and outs of the Home Buying process
Attend our live Home Buyer’s Education Webinar on Thursday, July 16 at 12:00 PM CDT, to learn more about the ins and outs of the home buying process. This no-cost webinar will provide you with the information and helpful tips you need to know to make the most of your purchase.
Ideal CU is a one-stop shop for your mortgage home loan needs. Our team is dedicated to making buying or refinancing your home a seamless and comfortable experience. If you’re ready to get started on your home loan application, contact us today to hear about our fantastic home loan options.
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