If you have been planning on buying a home, then you want to ask yourself if now may be a good time. Once you have come to a certain place in life and have achieved certain things, such as a high credit score, you can start looking for a home for you and your family to purchase. This way, you don't continue paying rent for a home that belongs to someone else. Here are some signs that you may be ready to purchase your own home:
You have a good credit score
There are some loan programs that are available to those who have a mid-range credit score. However, the lower your credit score is, the higher the interest you will likely end up paying. You should work on getting your credit score as high as possible when you want to purchase a home. There are different scoring models that can be used and different views on credit scores, depending on the lender. However, some lenders will view a credit score of 670 as a good one.
You have steady employment
When you go to purchase a home, they will want to see proof that you have steady employment. You should be prepared to show proof, such as your W2 forms. If you are self-employed, then they will likely want to see your tax returns. If you plan on purchasing a home soon, then you won't want to change jobs. It will be better to make that change after you are in your new home.
You have a bank account
You will more than likely need to give your bank account details to the lender as well. They will want to see that the bank account verifies your ability to pay the mortgage. You should make sure your bank account remains steady and that you don't make any large purchases that would drain it before going to buy a home.
You have a down payment
The amount you will need for a down payment depends on the type of loan you get. However, you should try to have as much as possible saved for the down payment, as well as any additional fees that may come up along the way.
If you have come to a point where you feel like you have all the things mentioned above, then you are in a good place to go talk to a lender. They may find that you are ready to buy a home, and they have the right type of loan for you.