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Signs You’re Not Ready to Be a Homeowner and How to Get There

On Behalf of | Dec 19, 2018 | Firm News |

Buying a home is a huge investment, so it can take a while for you to be fully ready to do it. If you’re not quite sure if you’re ready to become a homeowner, the following points can help you decide.

Before Buying a Home, Be Sure You’re Ready for the Responsibility

Buying a home requires a pretty hefty investment and a lot of commitment. Before deciding to start shopping for your first home on a whim, be sure you’re truly ready for everything that it requires. If you aren’t sure if you’re ready to invest in a home, the following considerations may help you decide if now is the right time.

Are You in Debt?

In order to buy a home, you first want to be sure you don’t have any other serious expenses that can complicate the process for you. If you have some debts, it’s best to get these taken care of before you even start looking for your dream home. Not only will paying off your debts mean you can focus on paying your mortgage, it will also send lenders the right message. Lenders will look at your financials because they want to be sure they’re lending money to someone who will be able to keep up with payments. Having outstanding debts may not make you their ideal candidate, so focus on taking care of this in order to get a better mortgage offer.

Do You Have Bad Credit?

Part of what lenders will check when deciding whether or not to offer you a mortgage is your credit history. If you don’t have the credit score you want, you’re better off waiting until you reach it before looking for a home. If your credit is less than ideal, you may still get a home loan but you may not get the best offers. Before starting the process of looking for a home, first get to know your credit score. Understand what it means and decide if it’s good enough. If it isn’t, there are plenty of things you can do to improve it. To start, pay off any debts you have accrued. Pay off your credit cards and don’t open any new credit lines. Avoid making large purchases in the meantime and focus on improving your score. Once you get your credit up to a good score, go ahead and start your home search. If you’ve decided now is a good time to invest in a new home, don’t forget to also factor in title insurance in Worcester into your budget. This will ensure there are no clouds in the title that can get in the way of your right to ownership. To get your title search started, contact Home Key Title at (508) 475- 5502.

Do You Have Savings?

Chances are you won’t be asked to pay cash for a home, but this doesn’t mean you won’t need any savings. In fact, having a decent savings account will be incredibly helpful when it comes time to purchase a home. Not only will this impress lenders, it can also ensure you won’t be short during the home buying process. Keep in mind that you won’t only have to pay the mortgage, there are plenty of other fees you’ll have to take care of before even making a mortgage payment. One of the largest upfront expenses you’ll have to be prepared for is your downpayment. Beyond that, be prepared for closing costs, different insurance policies you’ll have to get, and even moving expenses. If you don’t have any savings, this can always be fixed. Focus on cutting down on unnecessary spending and send that extra money into your savings account.

Are You Ready to Settle Down?

Buying a home is a sure sign of stability, which is what many people are looking for when buying their first home. If you’re not quite ready to settle down, you’re better off waiting until you are. Buying a home is a serious investment, so if you plan to move in the next few years now is not the time to make this investment. Even if you have the right credit score and savings, you shouldn’t invest in a home unless you’re sure it’s the right choice for you. Don’t let anyone pressure you into making this purchase and instead wait until you’re absolutely ready.

Protect Your Investment With Title Insurance in Worcester

Now that you’re sure your ready to purchase your first home, don’t forget about the title insurance! Title insurance in Worcester can help ensure there are no clouds in the home’s title that can stand in your way of ownership. Contact Home Key Title at (508) 475- 5502 to learn more.