If you think you’re ready for home ownership then this post is for you! Owning a home requires more than stable employment and money for a down payment – Here are a few additional things to consider.

1. You Can Afford Your Down Payment & Ongoing Costs

Once you have the down payment, it is important that you can also manage the monthly mortgage payments and ongoing maintenance that comes with home ownership. Our “My Mortgage Toolbox” app has a great calculator to help you determine what you can afford on a monthly basis. And we are here to help with that as well!

2. You Have Good Credit

Credit scores play a major role in qualifying for the financing to purchase a home. If you have a good credit score (at least 680) you have nothing to worry about! However, if your credit score is below this, it is more likely that you will be paying higher interest rates or not be able to qualify. Working with a mortgage professional can help get you on the right track as quick as possible. Sometimes all that’s needed is debt consolidation or a few subtle changes.

3. No Other Large, Upcoming Expenses

Do you plan on buying a new vehicle in the next two years? Are you thinking of starting a family? Are you considering going back to school? Although you may think you can afford to purchase a home right now, you have to be honest about your future plans. What does your life look like in one year? Five years? Ten years? Incurring big expenses is something that you need to factor into your budget.

4. You are Disciplined to Budget for Home Ownership

One of the most important factors for purchasing a home is budgeting. You have to know what you can afford and stick with it! It is easy to be tempted by a gorgeous six bedroom home with a backyard pool in a private community – but at what cost? If going all-in is going to leave you scrambling each paycheck or derail any plans of future financial stability, it is worth rethinking. Understanding the difference between what you NEED in a home versus what you WANT is important.