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How to Know if You’re Ready to Buy a Home

How to Evaluate Your Financial Situation Before Buying a House<br>Buying a home is one of the largest purchases youu2019ll likely make, and itu2019s important to make sure your financial house is in order. Start by reviewing your bank accounts and billing statements to get a handle on how much money youu2019re making and spending each month. If youu2019re planning to buy a house with someone else (like your spouse), review their finances as well, and then ask yourself some questions:<br>uf0b7Do you have a stable income/job?<br>uf0b7Are you able to put away some money each month into a savings account?<br>uf0b7Do you have a plan for

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How to Know if You’re Ready to Buy a Home

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  1. How to Know if You’re Ready to Buy a Home

  2. Seeing whether You're Ready to Make the Investment of Buying a House Purchasing a home is an exciting experience. It's also a significant commitment. Before you go house looking and comparing mortgage rates, it's always a good idea to assess your current status and how it might change in the future.

  3. Consider the following: - Are you planning any major life changes in the next five years, such as moving jobs or starting a family, that would affect your housing needs? - Can you commit to living in the same place for five to seven years? - Do you have a steady source of income? Are you confident in your ability to handle house repairs (or eager to learn) or are you willing to pay a contractor to fix something when it breaks?

  4. Determining Your Down Payment How much you need for a down payment depends on the type of loan and how much the house costs, but the more you can put towards a down payment, the lower your monthly payment can be and the more you’ll save on interest. High Ratio mortgages requires a down payment of at least 5% of the purchase price and Conventional mortgages require at least 20% down payment. Along with your down payment, you’ll have to pay closing costs which will be at least 1.50% of the purchase piece. Calculate the home price you can afford using your income and the amount of debt you have.

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