We all know that buying a house of our own is not a small feat. It requires a lot of deliberation, research, assistance, and of course, money. However, many people reach a stage in their life where they can afford to buy a house. But, how can you know you have reached that stage? In this blog, we will share with you some key signs that indicate you’re ready to buy your first home. What are those signs? Let’s find out.
Your Credit Score Is Good
As we all know, it is essential to have a nice credit score in order to buy a house. Typically, FICO score is considered one of the best type of credit score as it allows lenders to decide how they can charge you or provide you insurance on your loan. Also, FICO scores are known for including more data points in ascertaining your risk in borrowing money. A very high credit score will help you get a loan very easily as well as better interest rate. If your credit score is 730 or above, you come in the bracket of reliable borrowers.
You’re Debt Free Or Have Very Little Debt
It is generally advised to be debt free for a year prior to buying a house. Of course, this isn’t a strict rule and people with debt still manage to buy a house; however, it is best to clear all your debts before purchasing a property. We’re advising this to you because the mortgage is going to be present on your credit report for up to 10 years. So, it is best to keep your report free of any sort of negative marks as soon as possible. Ideally, you should postpone your plans of buying a house if your debt-to-income ratio is greater than 35 percent.
You Have A Stable Job And Income
Having a stable job makes it a lot easier for you to buy a house. Lenders will regard any full-time job a stable job if you have been doing it with the same company for at least 2 years. You will become a reliable candidate even more for the lenders if you have been at your job for longer. Lenders look at this because they want to be sure that you will be able to make payments in the future.
If you can notice the above-mentioned signs in your life, then you should definitely consider buying your first home. Just make sure you work with an experienced realtor like Shadrick Bogany to search apartments in Houston. Through his apartment search website, you can find properties according to price, number of beds, baths, square feet, and zip code. Working with a famous realtor like Shad will really make your home buying experience smoother and quicker.