Spring marks more than blooming flowers and higher levels of allergens. It’s also the beginning of homebuying season: the time when most individuals choose to sell their home or buy a new one.
Many studies have shown an upward trend in home purchases and selling at the beginning of spring, and that trend continues on until the fall sets in.
Anyone can begin the journey to homeownership, but are you ready to put in an offer right now? Here are some ways to know:
1. Your Debt is Under Control
This isn’t to say that you can’t have any debt going into homeownership, but you’ll certainly want to make sure that your high-interest debt is paid off. Lower-interest debt like car or student loan payment can usually be maintained on top of a new house payment, but make sure to do your math first.
2. You’ve Made a Budget
It’s important to know where all of your money goes each month, and setting aside savings consistently is key. Make sure that you can afford a monthly house payment as well as the other expenses associated with owning a home: home insurance, taxes, repairs, etc.
3. You’ve Done Your Saving
Saving for a down payment is perhaps the largest hurdle that homebuyers must overcome, but it’s important to also save enough for other expenses. For example, you’ll be responsible for your home’s repairs, so it’s important to also have a savings account and an emergency fund in addition to your down payment.
4. You Have Steady Income
Mortgage lenders will take a look at your employment history and take it into account when approving your loan. You should have both a stable income and one to two years of employment at your current job to be safe.This shows that your income will be able to support your long-term investment.
5. You’re Ready to Stay in One Place
You certainly don’t have to live in your new home forever, but for such a large investment, it’s best to be prepared to stay there for at least 5 years.
Everyone’s road to homeownership is different. Call CNE today to speak to a homeownership specialist and make sure that you’re ready!