5 Essential Signs That Tells You That You Are Ready To Become A Homeowner This 2019


Many aspiring homeowners often ask how one can determine whether or not you’re ready to purchase a house you can call own? While it’s part of the American Dream, there are lots of things to consider before one can safely say he or she is ready. Just because there are lots of affordable options out in the market, it doesn’t mean that you can start looking and applying for mortgage companies in houston right away. There are lots of factors you need to consider first- not just the low down payment fees and interest rates. 

Here are five essential signs that tell you you’re ready to become a homeowner this 2019.

Your DTI or Debt-To-Income Ratio is in Minimum Level

If you plan on a home purchase with the help of mortgage companies in houston, then keep in mind that you’ll have to show these lenders that you’re able to pay your monthly dues on time. Some mortgage specifically made available for first-time homebuyers, so it is also recommended that you look around and inquire a lot of lenders and avoid sticking to one. Moreover, you’ll need to have a DTI ratio of at least 31 per cent to 41 per cent to qualify for a mortgage loan,  not to mention other requirements needed to get approved.

You Have a High Credit Score and Your Credit Report is Error-free


Your credit report shows all of your credit history and transactions from different sources, and also your current dues, credit activities and situation. So, it is vital that you make sure that your credit report is error-free and immediately file a dispute if you find any. Your credit score also matters since lenders will check your score and see if you are a good payer. So it is imperative that you pay your dues on time, refrain yourself from applying for new credits and avoid buying expensive things before applying for a mortgage loan.

You Have a Stable Income

Having a stable job is essential before you apply to any mortgage lenders since it will show the lenders that you have a steady flow of income. You must also stay on your current employers or company for at least two years to prove to your lender that you’re capable of paying them back. Why? Because most lenders will ask for two years worth of proof of income. So, make sure you stay on your job and to list all of your income sources.

You Have Enough Cash for the Downpayment and Cash Reserves

Also, you should not just have enough cash reserves, but also enough money to pay for at least 20 per cent downpayment. While some mortgage loans accept little to no down payment, we still recommend to save up for your DP, cash reserves and emergency funds. Your cash reserves should be different from your emergency funds as you’ll need a separate amount of money in case of emergencies, maintenance, and repairs, etc.

You Have Plan on Settling Down in a Home for At least Five Years

If you have no plans of moving to a new place, state or country for the next five years, then you can safely say that you’re ready to buy a house. Purchasing a home is a significant investment and a long-term commitment. Since most mortgage loans can last up to 30 years or more, you’d need to stay long-term so that you won’t lose your investment.