Everyone has their own process of buying a home. The same as being ready to make that single major purchase; it takes time and it is different for everyone. The question now is whether you are ready or not. This article will be focusing on the signs that tell you the time is ripe for buying a home.
Signs that let you know the time is ripe for making a real estate investment
- You have a stellar employment history
One indication that you are ready to buy a house is stable employment. If you’ve been working the same job for the last two years, you are on your way to buying a home Myrtle Beach. Lenders need to be sure that applicants can pay their mortgage before they could approve their application. This process will be the same anywhere you go. Loan providers would typically require at least two years of W-2s. If you’re self-employed, be ready to provide tax returns for the last two years.
- You are not sinking deep in debt
Lenders normally check whether you have a good handle on your debt. If you have a debt-to-income ratio (DTI) that falls below 45%, you may proceed with buying a house. A low DTI normally suggests that you are capable of paying back any debt that you should take.
- A decent amount of savings
Other than having the capacity to pay all your debts, you should also have enough money in the bank. Most of the time, if you have at least 5% of the average cost of buying a house in savings, you might be ready to buy a home. Bear in mind that there are a lot of costs associated with buying a home. Having a sufficient sum in the bank will help with your down payment, closing costs, and other expenditures. Talk to your real estate agent for more information about the costs involved with purchasing a house.
- You’ve got a good credit score
Another thing that you need to consider is your credit score. Most of the time, credit providers would shun applicants who have a credit score below 500. However, if you have reached a credit score above 500, you might want to consider buying a house. Loan providers would require a stellar credit score to provide mortgage pre-approval. Getting approved on a conventional loan would require having a credit score of at least 620.
- Housing market conditions are in your favor
The last factor that you must consider is the current condition of the housing market. If mortgage rates fall, you might want to take advantage of it. You should also consider the times when house prices are declining. This time of the pandemic, housing prices are falling due to the lack of buyers in the market. However, the dynamics have changed which is why you should also consult experts like Full Potential Real Estate should you wish to buy a home during this period.
Are you planning to purchase your first house? You might want to avoid all problems in the process of buying one. Call Full Potential Real estate to get services that make purchasing a home a lot easier. You may call us at (843) 236-0203.
Full Potential Real Estate, LLC
Myrtle Beach, SC 29577