Are you ready for homeownership?
To help decide whether you are in a good position to buy a house, ask yourself the following questions:
If you can answer yes to all of these questions, you may be well on your way to owning your own home!
- Are you sure you want to buy a house?
- Do you have steady income and stable employment?
- Do you anticipate remaining in the same geographic location for the next couple of years?
- Have you created a budget so you know how much more you can realistically afford to pay for housing?
- Do you have an established credit record or can you build a nontraditional credit history with records of payments to previous landlords, utility companies, cable television companies, and insurance companies? If so, is your credit profile favorable? Do you pay your bills on time?
- Do you have enough money saved for a down payment and closing costs? If not, can you enlist the aid of relatives or government or nonprofit agencies?
- Have you been "prequalified" by a lender so you know how much you can borrow based on your income and existing debt?
- Is your existing debt low enough that it will not limit your ability to qualify for a mortgage? If not, can you pay down your debt before you attempt to buy a house?
- Have you looked into the benefits and requirements of the numerous mortgage products that are now available to low- and moderate-income homebuyers?
- Have you attended a homebuyer education seminar?
©National Foundation for Credit Counseling