When will you know that you're ready to buy a home? Take a look at our checklist to find out how ready you are: #1: I have a realistic budget I've calculated the expenses of buying a new home beyond the ticket price, such as all my closing costs, insurance, commuting costs, moving costs and yearly home maintenance costs.
#2: I've saved up a substantial down payment I've saved up at least 5% of the price of my new home as a down payment or I'm aware of what the costs will be of borrowing with less than 20% down.
#3: I have a reliable source of income and I don't expect a lower income for the foreseeable future.
The income I have is sufficient to cover my mortgage payments, the associated costs of home ownership, and I'll still have enough for my cost of living and long-term savings.
I'll be able to make those payments on a single income if my partner becomes unexpectedly unemployed.
If you are still searching for a more reliable income source, consider apartments for rent.
#4: I have an emergency savings fund that I won't need to touch when buying a home My emergency fund is enough for me/us to get by on for 3 to 6 months should I unexpectedly be without income.
#5: My debts are manageable and under control My monthly payments toward paying off my total debt, including my mortgage, is less than 38% of my gross monthly income.
#6: I know where my credit rating stands and it's in good shape I've checked my credit rating and it's been in good standing for at least 2 years before applying for a mortgage so I know I'll be getting the mortgage rate I deserve.
#7: I'm capable and ready for making a long-term commitment I plan on staying in my new home for at least 3 to 5 years and realize that moving earlier will likely result in me losing money on my investment or having to pay hefty capital gains taxes on any profit I make.
#8: I'm psychologically ready to take on the responsibilities of homeownership I'm ready to transition to a lifestyle of homeownership and all of the responsibilities and costs that come with it, such as property maintenance, home maintenance, and renovations.
So, how'd it go? Were you able to comfortably agree with the statements? If so, then you should talk to a mortgage broker about making homeownership a reality.
If you're not quite ready, that's OK there are still plenty of houses for rent! Keep renting until you're in a better position.
#2: I've saved up a substantial down payment I've saved up at least 5% of the price of my new home as a down payment or I'm aware of what the costs will be of borrowing with less than 20% down.
#3: I have a reliable source of income and I don't expect a lower income for the foreseeable future.
The income I have is sufficient to cover my mortgage payments, the associated costs of home ownership, and I'll still have enough for my cost of living and long-term savings.
I'll be able to make those payments on a single income if my partner becomes unexpectedly unemployed.
If you are still searching for a more reliable income source, consider apartments for rent.
#4: I have an emergency savings fund that I won't need to touch when buying a home My emergency fund is enough for me/us to get by on for 3 to 6 months should I unexpectedly be without income.
#5: My debts are manageable and under control My monthly payments toward paying off my total debt, including my mortgage, is less than 38% of my gross monthly income.
#6: I know where my credit rating stands and it's in good shape I've checked my credit rating and it's been in good standing for at least 2 years before applying for a mortgage so I know I'll be getting the mortgage rate I deserve.
#7: I'm capable and ready for making a long-term commitment I plan on staying in my new home for at least 3 to 5 years and realize that moving earlier will likely result in me losing money on my investment or having to pay hefty capital gains taxes on any profit I make.
#8: I'm psychologically ready to take on the responsibilities of homeownership I'm ready to transition to a lifestyle of homeownership and all of the responsibilities and costs that come with it, such as property maintenance, home maintenance, and renovations.
So, how'd it go? Were you able to comfortably agree with the statements? If so, then you should talk to a mortgage broker about making homeownership a reality.
If you're not quite ready, that's OK there are still plenty of houses for rent! Keep renting until you're in a better position.
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