Ideas To Know If You’re Now Able To Buy A Home In Texas
4. Your Credit Score Is More Than 500
If you have a credit score that’s not lower than 500, it’s another indication telling you that you’re financially ready to get your own home.
Aside from having enough money in your bank account and a good DTI, lenders largely take into consideration one’s credit score in terms of deciding whether a person is approved for a mortgage loan or not. The exact score needed to get approved greatly depends on the type of house and loan that you’re applying for. Generally speaking, having a credit score of 620 will get your conventional pre-approved immediately. However, there are exceptions for first-time buyers that they may get an FHA loan and get approved even with a credit score of 500.
5. The Market Is Leaning Towards Your Favor
After taking into consideration your financial capacity and stability, another important factor to look into is the market condition. Don’t forget to check the market’s interest rates. If you’ve noticed that there’s a decline in the trend, then it’s a good sign for you because it simply means that you’ll have to pay less when you apply for a house mortgage.
Another factor to look into is the home’s area – does it fall under the seller’s, or the buyer’s market? Remember, you want to purchase a house that’s within the buyer’s market.
6. You’re Ready To Set Some Roots
According to some studies, it’s worth buying a home if you intend to stay in that house for at least five years. Recent research has found out that it takes at least 4 years for homeowners to breakeven on the cost of the house – and an additional year to consider the home as a smart investment.
Buying a home is for those people who are decided that they wanted to live in that city and state for a minimum of five years. If you have a soaring career and if you’re still thinking of moving to another area, then it might not be the right time to make a house purchase.
7. You’re Not Taking Care Of Other Larger Expenses
If you’re paying for big expenses or planning on getting one – then don’t get a house just yet
At this point, it should be clear to you that it requires a lot of thinking, financial stability, and settling down before one can buy a house. It isn’t a simple decision that can be made on a whim. It’s a financial decision that needs to be thought of carefully. If you have other big expenses lined up such as education, wedding, or even having a new baby, now might not be the right time to consider buying a home.
Instead of rushing things, wait for the right time to buy your home. Wait for you to become financially stable, and wait until you’re comfortable on taking larger monthly expenses. Once you’re comfortable taking that additional expense, then you’re ready.