5 Questions That Can Tell You Whether You’re Ready to Buy a Home
Before you start searching for your dream house, ask yourself: Can I qualify for a mortgage? Can I afford closing costs plus a down payment? Can I afford insurance and property taxes? Is this a long-term plan? Can I handle home maintenance? Can I Qualify for a Mortgage? If you’re like most people, you’ll need to take out a mortgage loan to buy a home – and for that, you’ll need to qualify. Your best bet is to start talking to lenders to see how much money you qualify to borrow and what types of rates you may get. To qualify for a mortgage, you generally need job stability, a solid credit history, and some money in savings (for your down payment). Can I Afford Closing Costs Plus a Down Payment? Your down payment isn’t the only cash you need to come up with to buy a house. You’ll also be responsible for closing costs (unless you can get the seller to pay some or all of them). You’ll have to pay for home inspections, appraisals, and a variety of other fees, which can total 3 percent
