If you are in your middle 20’s – mid 30’s and you’re starting to think about the prospect of owning a home then this blog post is for you. Becoming a homeowner sounds very simple and straight to the point on paper; however, there is much more to it than what meets the eye. Although, this does not mean you should not go for it, becoming a homeowner is something to be proud of. If you are in a situation where you think you are ready, it’s important to make sure you truly are ready. This means it’s time to do some serious self-reflection. Becoming a homeowner is not just about the money and credit score, it’s about you as a person, and if you think you can budget and manage a mortgage. You may be thinking that if you can handle your monthly apartment rent that a mortgage can’t be that much harder, but trust us when we say the two are in totally different areas. Here at Ace Mortgage Loan Corp., we want to help you take the big leap into homeownership, but first, we have created this list of signs so you can determine if you are ready.
You Have Good Credit
When getting approved for a home loan the lender is going to take a look at your credit score. While it doesn’t need to be perfect it should still be more on the higher side. Usually, a credit score of around 640 can get you approved if you have not missed any credit card payments in the past 12 months. However, if your credit score is at least 580 you can most likely get approved for an FHA loan with a certain percent of a down payment shown upfront. Regardless, it’s important to try and maintain good credit and constantly be improving it. This will help you out tremendously as you go through the homeownership process.
You Have a Solid Stream of Income
This is by far one of the most important aspects of getting approved for a home. The lender is going to want to make sure you can keep up with your mortgage over the years, meaning that having income constantly coming in is extremely important. A lender will usually want to see that you have been at your current job for at least 2 years and have had a history of solid employment. These credentials will allow the lender to build trust in you and your ability to pay back your loan. You are also going to want to show that you have been able to save money over time. This way if employment does fall through for whatever reason, you will be able to continue paying your mortgage until you can become employed again.
You Can Afford Monthly Fees
When thinking of moving into a home you may be taking into account the mortgage payments every month; however, owning a home is so much more than just monthly mortgage payments. It’s the garbage pick-up payments, the maintenance fees if there ever is a problem, pest control, insurance, and more. These fees alone can add up and make a couple thousand a month mortgage payment turn into double the amount. Living in an apartment gives you the luxury to call a landlord when there is an issue, but this will no longer be the case in your own home.
Here at Ace Mortgage Loan Corp., we want to be the first to say congratulations on taking the first step towards purchasing a home. We know how overwhelming the process can be which is why we want to be there to help you every step of the way. The process itself can be intimidating; however, we will do our best to make sure you know exactly what to expect from start to finish. If you are still on the fence about whether you are ready or not for ownership, we can go over everything with you and help you figure that part out. To learn more about homeownership and our services at Ace Mortgage Loan Corp., give us a call today at (954) 906-4858. We are looking forward to helping you!