One of the biggest dilemma you might be facing regarding your housing needs is whether to own or rent the property. Here are a few sure signs that will tell you that you are ready to become a homeowner when you might want to explore San Miguel homes for sale.
Globally, rents have risen over the last few years. Studies show that the rising rents make it difficult for budgeting the monthly costs of housing besides saving for other financial goals. When the situation tells you that it is a bad investment to rent a house, it is time that you think about mortgage.
Solid credit score
Quite a many aspiring homebuyers cannot qualify for a home loan as they might have low credit scores. Too much debts and history of late payments can impact the credit score leading to such a situation. On the other hand, if you have a solid credit score, it is a sure sign that you can think about buying your new home as you are most likely to get the best interest rates and favorable loan terms. A real estate expert McClary says, “Establishing a credit history or recovering from a credit setback can take time, but the goal of homeownership is still realistic under those circumstances.” Suggesting a way out during such times, he says, “Receiving help from a nonprofit housing counseling agency that also offers credit counseling programs can make a big difference for anyone struggling with those barriers to homeownership.”
Your debt gets manageable
Debt to income ratio is one another aspect money lenders scrutinize while considering your eligibility for loans. If your DTI ratio is low, it is time that you consider buying a home.
Down payment is affordable for you
Down payment requirements vary between different home buying situations depending on the type of home loan you opt for. CEO of Atlanta-based Down Payment Resource Rob Chrane says, “First-time homebuyers don’t have proceeds from another home to help fund a down payment. It’s one of the main reasons why the down payment is the biggest hurdle to homeownership.” On the other hand, a feeling that down payment is affordable for you is a great sign that you are in a favorable position to buy your new home.
Enough backup resources for maintenance
Maintenance costs are borne by homeowners when you rent a property. On the other hand, these costs can weigh down upon you when you own a house. The same is true with the property taxes too. If you have enough additional resources to manage these expenses, you can certainly think about buying your first home.
You have faced a big change in your life
Several renters feel it is time to purchase a home after they undergo a major change in their lives like getting married. Raising a family and retiring are some good reasons for many people to buy their new home. Therefore, a big life event can be the best time to think of buying your new home.