There are certain qualifications you will need to meet to be able to purchase a home. Here is a list:
• You have a steady, reliable source of income and a steady employment history for at least two years.
• You have a credit history.
• Your total debt is manageable and you can afford to take on the costs associated with homeownership.
• You have money saved for a down payment and closing costs or you have access to other sources of funds, such as an employment bonus, tax refund, or a gift from a relative.
Think about your future plans that might affect your ability to manage the costs of homeownership.
• Consider whether you need to make lifestyle changes that might include not taking expensive vacations or purchasing luxury cars, and dining out less.
• Consider the costs of a growing family when looking at your homeownership budget.
• Consider whether your future plans might include a wedding or college education for yourself or your children.
And remember, the mortgage is not the only expense you need to consider. Homeownership comes with other potential budget items such as repairs, maintenance, taxes, landscaping, etc.
Once you fully understand your current situation, your future plans, and the big picture in terms of homeownership, it's important to look at the pros and cons of homeownership to make the best decision for you and your family.
