What do you need to prepare for in order to know if you’re ready to become a homeowner? Take the following necessary steps to see if you’re READY.
R – Responsible
- Are your responsible with your current financial situation?
- Do you pay your rent on time?
If you’re paying rent, you are ready for home ownership, you just need to make a few changes in your lifestyle to accommodate the home purchase.
E – Evaluate
Evaluate your credit at least 6 months prior to your home search so you know where you stand. Make sure you’re creditworthy by getting pre-approved and providing the necessary documents to your lender.
A – Adjustment
You will need to begin to adjust your priorities and start thinking like a homeowner.
- How are you managing your finances?
- Are you living paycheck to paycheck?
You never want to go into homeownership strapped. You will have other expenses so make sure you’ve added them to your budget.
D – Decide
It all starts with a decision. Once you decide you’re ready to become a homeowner, determine much you want to pay for a mortgage each month after you’ve evaluated your current budget.
If that amount is more than your rent, you will need to prepare yourself for the monthly increase. For example, if your rent is $2000 and the home you want will have a mortgage payment of $2500, you need to save $500 a month for at least 6 months.
This is the tell-tale sign that you’re ready for the increase in your housing expense.
Y – Put Yourself First
You’re worthy of the American dream so don’t talk yourself out of it. Don’t operate out of fear just faith!
- When you leave your apartment after paying rent on time for years, all you’re left with is a security deposit.
- When you buy a home, you will build equity and your home will continue to increase in value and can work as a savings or investment for you in the future.
Remember if you’re paying rent, you’re ready for homeownership. You just need to make the necessary adjustment to make it happen!
It’s not IF you can become a homeowner… it’s WHEN!
Tammy Moore is Division President at Diamond Residential Mortgage, a motivational speaker and Credit and Financial Coach. In her spare time, she is the Budget Conscious Fashionista, where she teaches Style $ense: How to look stylish on a budget!