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5 Definite Signs You’re Ready To Buy A Home

Renting a home comes with many downfalls compared to owning a house; you can’t modify your space, repaint the walls, or even knock in a few nails to hang some art without losing your security deposit. But aside from this, you can rent a property forever and still receive nothing in return.

For many tenants, renting is typically an interim means of housing, while buying a home is the ultimate goal.

But if you’re becoming increasingly frustrated with the specifics of renting, yet you aren’t entirely sure if you’re ready to buy just yet, we’ve listed five definite signs it’s time to apply for a mortgage loan.

You Can Afford Mortgage Loan Repayments

If you’ve been browsing real estate listings in your area and rounded up a few homes that suit your needs and wants, you’ll have a realistic idea of how much you’ll need to apply for with a lender.

And if you’ve calculated the repayments, the cost of home insurance, and other costs like property taxes and feel you can afford this monthly amount comfortably, you’re ready to buy a home.

You’ve Saved A 20% Deposit

When applying for a mortgage, it’s essential that you have a deposit or downpayment saved up to secure approval. Your mortgage loan application will be rejected if you don’t have at least 10% of the total loan amount saved.

But even though 10% is the general standard among lenders, it’s wise to go the extra mile and save 20%. The larger your loan deposit, the lower your loan repayments will be as well.

Your Credit Score Is Healthy

You’ll also need a healthy credit score to receive approval for a mortgage loan. So, confirm that your score is 600 or higher.

Although, if your credit score is any lower than this, you can boost it within a few months by paying your bills on time, eliminating debts, and using credit sparingly.

Your Rental No Longer Feels Like Home

If you meet the criteria listed above, there’s a high chance you can secure a mortgage loan. Moreover, if your rental is starting to feel more and more cramped and less like home, you should consider this another sign that it’s time to buy.

No matter how big or practical your rental home is, it will never genuinely be your home, which is why it’s wise to purchase a property instead of remaining a tenant.

You’re Ready To Settle Down

Buying a home is a massive financial responsibility. As a result, it’s essential that you are ready to settle down; you’ll be living in your new home for several years.

So, if the stress of not knowing when your landlord might give you notice or decide to sell is starting to eat away at your peace of mind, consider the option of buying a home instead. Buying a home means you’ll have absolute surety and living stability.

With that said, if you’re ready to buy, you’ll need to find a home and then opt for an appraisal and an inspection. Next, understand mortgage rates and loan criteria and determine the closing costs.