Most of your friends would advise you to purchase a house and stop paying rent. However, you might be a little hesitant because the property values have declined 22 percent nationally. You can still buy a home this year. But before rushing it all, ask yourself first - Am I ready to buy a house?
Do I have the Money? This is the most practical and straightforward question that you have to ask yourself. If making a down payment leaves your pocket empty then you are definitely not ready for home ownership just yet.
Do I have a Stable Source of Income? A stable income is a must to pay for the mortgage every month if you have decided to look into houses for sale in your area. Even if you have been employed for the last 2-3 years, you need a steady source of income that will not dry up because the economy is uncertain, and if your job dries up, your home is in a great danger of being foreclosed.
Can I afford the Mortgage? Do you have the ability to pay a mortgage every month? Assuming that the housing payment-to-income ratio ranges from 28 to 33 percent, do you still have savings for college, retirement, hospitalization, and other important things after you pay your mortgage every month?
When lenders approve you for a loan, they consider debt-to income ratio which is the comparison of your gross (pre-tax) income to housing and non-housing expenses which are expenses that refer to long-term debts like car or student loan payments, child support, etc.
Do I have the Money? This is the most practical and straightforward question that you have to ask yourself. If making a down payment leaves your pocket empty then you are definitely not ready for home ownership just yet.
Do I have a Stable Source of Income? A stable income is a must to pay for the mortgage every month if you have decided to look into houses for sale in your area. Even if you have been employed for the last 2-3 years, you need a steady source of income that will not dry up because the economy is uncertain, and if your job dries up, your home is in a great danger of being foreclosed.
Can I afford the Mortgage? Do you have the ability to pay a mortgage every month? Assuming that the housing payment-to-income ratio ranges from 28 to 33 percent, do you still have savings for college, retirement, hospitalization, and other important things after you pay your mortgage every month?
When lenders approve you for a loan, they consider debt-to income ratio which is the comparison of your gross (pre-tax) income to housing and non-housing expenses which are expenses that refer to long-term debts like car or student loan payments, child support, etc.
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If you can answer "yes" to all of these questions, then you are probably ready to buy your own Lehi UT home More buying tips at Homes for Sale in Bountiful UT.. This article, The Best Time To Buy A Property is released under a creative commons attribution license.
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