Being ready to buy a home doesn’t happen overnight.
If you want to start thinking about buying a home, asking yourself this question is a good place to start: Do I have my finances in order?
If you have your finances in order, it probably means you’ve worked hard to build your career so that you have a stable income. You’ll likely have worked hard to raise your credit score and have saved up for years or months for the down payment.
Next you can ask yourself: Can I afford to buy a home?
Things like your income, how much you have saved for down payment, and interest rate help determine how much you can afford to borrow to buy your home. Tools like these free calculators lets you estimate this amount and what your monthly payment might look like.
Other things to consider: hidden costs
You will also want to do research and carefully consider the costs and expenses of buying as opposed to renting. There may be hidden costs of home ownership so it is important to keep in mind that while you could possibly qualify for a much larger mortgage, you may still choose a smaller mortgage so that you can save for other financial goals, like your children’s college fund, retirement, or that anniversary vacation to Italy you’ve been dreaming about.
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