You might be on the fence as to whether you think you are ready to buy a house or if renting makes more sense for you right now. Here are some ways to tell if you’re ready to buy a house versus continuing to rent.
#1. You are ready to stand one place for several years.
If you prefer moving around or you have a job that might take you to a new location in the next year or two, buying may not be the right decision at this time. However, if you’re planning on staying in one place for at least five years, buying might make more sense. This is not the only requirement, but it certainly is something to consider. Buying works out better if you stay in the home for several years, preferably a minimum of five years.
#2. Your credit history and report is over 680.
If you’ve been working on improving your credit history and score make sure you get a copy of your credit history by one of the three major corporations; Experian, Trans Union, and Equifax. You should be able to order a report for free once every year. Go over the report and make sure there are no errors or mistakes, delinquent accounts and that your credit score is at least 630, 650 or over 680. A credit score over 680 will ensure you better rates. Anything lower than 680 and you may qualify for certain discounts or distressed programs.
Read more: More factors on buying vs. renting
#3. You saved a little bit of money.
Buying a home can be done with a minimum down payment or even a zero down payment, however, you will need certain funds in the bank for inspection costs, appraisals, earnest money, etc. Having at least $5000 in the bank in savings or easily accessible offers a cushion for any emergencies that come along, and it shows the lender that you are responsible with your money.
#4. You’re ready to take on more responsibility.
If you’ve never owned property before and you’ve only rented, you need to understand the responsibility that comes along with owning a piece of property. You no longer will be able to collect the landlord of something breaks, you have a leak, or something needs to be replaced or repaired. You are the only one that is responsible for replacing and repairing any issues that come along. While many homeowners cherish the idea of owning a piece of property and doing whatever the want on it legally, there is the responsibility of maintaining the home and general upkeep. If something breaks, you will be the one to fix it, or you’ll have to pay for someone else to fix it.
If you fit into these four criteria, then feel free to give me a today to find out how much you could be approved for. If you have more questions, don’t hesitate to contact me to discuss your credit history, special programs that may currently be available and whether or not you qualify for the lowest interest rate.