10 Signs You're Ready to Buy a Home | Chicagoland IL Homebuyer Tips
"You can feel it. You know when you're ready to buy." - Jen Corso
Introduction:
Buying a home can be one of your biggest accomplishments and sometimes you don’t even realize that you are ready to buy. If you have been contemplating if it’s time to make a move, there several things that maybe signs that you are ready to buy.
With that said, here are 10 signs that you're ready to buy a home! 👊🏠
1) You saved a large down payment
If you have been saving every penny and birthday money you may be ready to buy a home. You don’t have to put down your whole life savings. Ideally, you’d rather put down 20% but there are mortgage programs that have lower down payments. FHA and conventional loans have 3.5% and 3% down payment programs. It’s not just the down payment you need to save for. Out of pocket expenses, closing costs, and maintenance cost of owning a home.
2) You have good credit
Having good credit can really help you get a low interest rate. Having late payments, a spotty history, or no credit history at all can be more difficult to get a mortgage. When you get pre-approved a lender will run your credit to see if there are any red flags like late payments and what credit you have opened. It also let’s you know what the balance is. Having a credit score of 700 will put you in a better place for a mortgage.
3) Your job is stable
If you have been working for over 2 years at the same job and plan on being there, then you may be ready to buy a home. Having a consistent job helps lenders feel confident lending to you. The lender will verify your job and any past jobs.
4) Your income has been consistent
Having a consistent income to be able to pay the mortgage and other bills can help the lender have a peace of mind. Since your loan amount is based off your income and debts, it’s important to have steady income. Lenders will look at your income history and bank statements to see how much money you bring in and spend. If you have more income than expenses, then you may be ready to buy a home.
5) You don’t have a lot of debt
Everyone has a little debt. There are bills to be paid. Lenders look at how much debt you have, which could be vehicle payments, credit cards, to student loans. If you have maxed out all your credit cards and a high balance on your car payment, it may be harder to get a loan. Lenders don’t want to lend to anyone that has a lot of debt. If you can’t pay off your debt, how will you pay the mortgage. Lenders may consider you a high risk.
6) You have money for closing costs and out of pocket expenses
If you have saved for a down payment plus extra savings, you may be ready to buy a home. It’s not your down payment that you need to save for. There are other costs to buying a home. Home inspection, homeowner’s insurance, and appraisal are some other the other costs to buying a home.
7) You can budget for mortgage, real estate taxes, utilities, and maintenance
If you are good at budgeting and staying on top of your bills, then you will be more likely to get a mortgage. You have to be able to afford and pay on time when you own a home. Don’t ever go into buying a home without knowing what the costs will be. You will have to include your real estate taxes, utilities, and any maintenance like furnace filters and light bulbs.
8) You are not planning on moving in the next five years
Unless you plan on flipping the home, don’t buy a home if you intend moving in the next five years. There is upfront cost to buy a home and to recoup your money can be a few years if there’s not a lot of equity. There is also a cost to selling the home including the realtor's commission. If you plan on moving or selling in the next 5 years, it would be smarter to rent. Wait to lay down your roots.
9) You have an emergency fund or savings
If you have planned for all the costs of purchasing a home and have extra savings, then you can be ready to buy a home. The last thing you want to do is go house broke. Having an emergency fund for any issues that will come along like a new roof or losing your job can really help you stay afloat with the cost of owning a home.
10) You are prepared to handle repairs
Some buyers are looking for the move in ready home. Cosmetically it may look great, but something will break down eventually. Appliances, furnaces, and air conditioners may just stop working. Walls get holes, flooring gets wet, and toilets over run. Knowing how to repair or know someone who does can really help if you are deciding to buy a home.
BONUS:
11) You have researched your mortgage options
The first step to buying a home is to get pre-approved. Understanding your mortgage options can help you save money in the future. You may just want a low-down payment. You may want a fixed interest rate. You may be veteran and qualify for a veteran's loan. Depending on your current situation and how you see your future in your home can guide you into finding the right mortgage. Finding the best lender can help you decide what the best loan program is for you.
Conclusion
In competitive markets across the western Chicago suburbs, creating a comfortable showing environment can make a significant difference in how quickly your home sells and the offers you receive.
Curious if you're truly ready to buy? I can help you map out the next steps.
I help homeowners across the Chicago suburbs prepare their homes and navigate showings with confidence.
📩 Contact me at www.jencorso.com
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The Author is Jennifer Corso - Realtor. This was created for informational purposes only. This is only opinions and stories obtained by Jennifer's own experiences.