Are You Ready to Own?

Housing prices have dropped dramatically in the past few years. Together with a very low interest on mortgage loans, the possibility of owning a home is a greater possibility than ever. But the satisfaction of a purchase like this is tied to a great deal of responsibility, so the recommendation is always that the potential homeowner knows their duties and obligations before taking the big step of owning a home. To find out if you are ready to own, continue reading or wait for details to be given later.

Your personal situation

Ask yourself who will live in the house, if you're single or plan to marry, if you have children who need a yard or if the house has a garden or needs exterior paint. Think of this like an interview, at what stage of life are you at? What are your priorities? Can you afford the house of your dreams or a simple home with minimal amenities?



Your financial stability

Will you have enough money to save, make your monthly mortgage payments, and live comfortably? When buying, you will be asked for a down payment and you may have to cover closing costs. Both are very large expenses and the bank will ask for evidence that you have the money. Furthermore a move always brings additional costs and that is why it is important to think about details to be given later once you have plenty of money saved. One of the first questions you have to answer is how much your mortgage will be, something that an expert on the subject can help with.

Your employment status

The bank will also analyze your employment and the stability thereof. Do you have a fixed income or is there a potential for your income to increase? Are you self-employed or have you been at the same job for more than a year? Having a secure job will help you qualify for a mortgage loan, as it is one of the most important requirements to owning a home. But also the fact that you have a stable and adequate fixed income will provide the peace of mind of meeting payment obligations.

Your credit history

If you are like most buyers you will need a mortgage loan. The approval of this will depend largely on your credit history. Getting pre-qualified for a home loan is ideal, as it will tell you not only that you qualify for the purchase, but it also gives you an idea of the maximum amount you can borrow. While your Realtor can guide you in this regard, it is only a preliminary orientation. You should consult a financial institution for pre-qualification and get answers to all your questions. Contact Breckenridge Real Estate for more information.