Are You Ready to Buy A House?

Interested in buying your first home, but not sure if you can afford it? Here are some questions to consider.

• Do I have a steady source of income?
• Have I been employed on a regular basis for 2 or 3 years?
• Is my income reliable?
• Do I have a credit history?
• Do I have a good record of paying bills?
• Will I be able to pay my bills and other debts?
• Do I have the ability to make the mortgage payment every month and pay additional costs for taxes, insurance, maintenance, and repairs?
• Do I have additional funds saved for emergencies such as possible repairs to a home?
• Do I have money saved for a down payment and closing costs?

Down payment is the portion of the home’s purchase price the buyer pays in cash. The more you have for a down payment, the less you will need to borrow. Closing costs are charges related to transferring the ownership of the property. The lender must tell you what these costs are.
 

If you answered yes to these questions, you might be ready to buy a home. If you answered no to any of these questions, concentrate on strengthening those areas. You can find help by looking for first-time homebuyer education classes. These classes are a good source of information and will help prepare you for homeownership.