Renting gives people many options and the flexibility to move. However, many renters have homeownership as a future goal, so they have a place on their own and build financial security.
Here are a few signs that show you may be ready to make the leap to buy a home.
Rent Payments Keep Going Up
Rents are going up in some parts of the country, making it harder for renters to anticipate monthly housing costs and put money towards other financial goals. When paying a landlord every month is no longer appealing and you want to build wealth for the future, it’s time to figure out if you can qualify for a home loan.
The balance may be tipping towards buying if you’ve had your rent increased significantly and you feel trapped. With today’s escalating rental rates and low interest rates, there is a good chance your monthly loan repayment could be less on a purchase than on a rental. Renters are typically ready to buy a home once they have achieved financial stability, want to customize or control their homes, or simply want the pride of owning their own place. If one or more of those is true for you, at least look into the possibility of owning rather than renting.
Your Credit Score Is In Better Shape
One of the signs that a renter is ready to buy a home is a healthier credit score. Having a good credit score, which reflects your credit history, is critical for securing the right loan and the best possible rate.
First, get a free copy of your credit report. Look for and address issues that might be hurting your score, such as late payments, high balances and debt collection activity. A mortgage broker can work with you to identify what issues to get control of.
You Have Enough Money Set Aside For Owing A Home
The old 20% deposit requirement is an outdated myth. There are many options to borrow up to 95% of the purchase price and some even has high as 99% with Lenders Mortgage Insurance. This significantly reduces the amount of deposit you need to save to get into your first home.
Ready To Leave Renting Behind? Let’s Get Started.
Before you start looking at potential homes, talk with a mortgage broker and get pre-approved for a mortgage first. Getting pre-approved helps you know how much house you can afford, what loan is best for your situation and what price range to focus on so you don’t overextend your budget.
With proper planning, and teaming with a knowledgeable mortgage broker, home ownership is within reach.