What's Holding You Back? How To Tell If You're Ready For A Mortgage Of Your Own
Posted on: 26 August 2021
If you've been postponing the purchase of your first home because you didn't think the time was right, it's time to stop postponing. You might not think that you're ready to take on a mortgage, but that might not be the case. In fact, you might be more ready than you think. Read the list provided below. If you match the criteria described here, you're ready to take on the mortgage for a new home.
You Have a Good Credit History
If you want to buy your first home, but you're not sure you'll qualify for a mortgage, the first thing you need to do is take a close look at your credit history. If you pay your bills on time, avoid collection accounts, and have a high credit score, chances are good that you'll qualify for a favorable mortgage. In fact, your good credit history may even qualify you for low interest rates, which means you'll pay less on your monthly mortgage payments.
You Have the Down Payment
If you want to buy a home of your own, but you don't think you're ready, consider the down payment. To do that, you need to think about the price range you want to shop from when buying a home. Once you've narrowed down the price range, take a look at your savings account. If you've already saved a small percentage of your preferable price range, you're in good shape to start shopping for your first home.
You're Current on Your Rent
If you want to buy your own home, but you're afraid you can't afford a mortgage, look at the way you pay your current rent. If you pay your rent on time each month, you're not behind on your other bills, and you still have spendable cash left over, it's time to apply for a mortgage loan for your own home. Once you buy your home, you won't be paying your landlord's mortgage, you'll be paying your own.
You're Settled in a Career
Finally, if you want to start your own journey towards being a homeowner, take a look at your career. Where you are in your career tells a lot about how ready you are to buy your first home. If you're settled in your career, and you have more than a couple of years at your current job, now's the time to talk to a mortgage lender about buying your first home.
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