How to Know if You’re Ready to Take Out a Mortgage
For many younger millennials, buying a home isn’t even on the radar. The great recession of the last decade discouraged many people from applying for a mortgage. However, what many young people don’t realize is that they ARE financially qualified to get a home loan. If you’ve been responsible with your money and have been steadily working to improve your financial stability, now is the perfect time to take the first steps towards home ownership.
Here are the signs that you’re ready to take out your first mortgage.
You’ve paid off your debt and have a solid credit score
One of the biggest signs that you are ready to take out a mortgage is that you have paid off most of your debt. If you’re still struggling with student loan payments, car payments, or credit card debt, you should prioritize those before taking out a mortgage. If you’ve lowered your debt and have a strong credit score, you are probably a great candidate for a home loan.
You are able to save money and make a down payment
Another key sign that you are ready to buy a house is that you have consistently been able to save money over the last few years. If you have developed a habit of putting away money after paying your essential expenses each month, there’s a good chance you have enough saved up to make a down payment on a home. Down payments vary depending upon the price of the home and the type of loan. Keep in mind, there are other costs associated with buying a home, such as closing costs and repairs along the way.
You have a stable career and goals for the future
A stable job is also very important for anyone looking to buy a home. You should have a steady, reliable income when you are ready to buy a home. Ideally, you should be planning on staying at the same company, or at least in the same line of work, for years to come. You should be able to predict to a certain extent what your budget is going to be and feel confident that you can afford the mortgage payments.
If you fit these criteria and are ready to discuss mortgage options for a first-time home buyer, Herring Bank’s lending experts are here to answer any questions you may have. Give us a call at 866-236-4779 or request a call below to discover how we can lend the way to your next home!