Buying your first home is an exciting and sometimes nerve-racking experience. Are you prepared for the biggest purchase of your life and the responsibilities that come with owning a home? Here are 5 signs you may be ready to embark on the path to homeownership.
1. Steady Job
It should come as no surprise that employment plays a factor when it comes to qualifying for a home loan. Employment with the same company can show financial stability, and help during the loan pre-approval process. Most home lenders want to see at least two years of employment with the same company.
2. Low Debt
Reducing your debt, whether it’s credit card debt, car payments or student loans, will allow you to save more of your income each month. This extra cash flow will help you save up for a home down payment, which may be lower than you think. Having a low amount of debt will also allow you to have money for a mortgage payment and home expenses.
3. High Credit Score
After reducing your debt you may see a jump in your credit score. Having a higher credit score will allow you to get approved for a desirable interest rate, which means that you will have a lower mortgage payment each month.
4. Good Amount of Savings
Some experts recommend a 10% – 20% down payment. However, you don’t always need a large down payment. In some cases you can buy a home with as little as 3% down. You should also be sure to have enough money left over for unexpected home expenses and other emergencies.
5. Ready to Settle Down
How do you know it’s the right time to buy a home? If you’re getting married, moving, have a child on the way, or tired of renting, now could be the perfect time. Buying a home means that you are ready for the responsibility and joy of homeownership.
Ready to settle down? Find your first home at one of our beautiful communities. Visit www.lennar.com to find the right home for you.