Are you ready to become a homeowner?

by Margie Olivares


Am I ready to become a homeowner? You will likely ask yourself this question at some point in time. So how do you know if you are ready? Below are some indicators that you might be more prepared for this big step than you realize.


Do I Have a Steady Source of Income?

This is crucial for any homeowner. Having a reliable source of income (annual salary, self-employment, SSI, disability, child support, etc.) is one of the most important aspects. For example, through Habitat, we require applicants to show proof of stable income in the last three years. Traditional home lenders will look at similar items when approving people.


Can I Afford the Monthly Fees?

Whether you purchase a home through Habitat or with a traditional lender, make sure you can pay the mortgage. You don’t want more than 30% of your monthly gross income to go towards housing. Yes, that does include insurance and taxes. The utility bills for a home are likely higher than for an apartment. Be sure to budget that into your monthly spending.


Do I have too much debt?

Debt plays a role in the ability to purchase a home. Having too high of debt can prevent you from purchasing a home with many lenders. Having too many credit card lines open can be a factor. Not to mention medical bills. Habitat does not count medical debt against applicants but a traditional lender might. Additionally, if you have student loans that you’re paying off, the smaller that debt the better.


Read more on what is considered a good debt-to-income ratio here.


Am I Ready to Settle Down in a Permanent Location?

Tired of moving around every time your lease expires? Is the increase in rent every year a struggle? Buying a home is a long-term investment. Knowing that you will be in one place is something to consider. If you think you are ready for the stability and commitment you could be ready for homeownership.


Am I Ready for More Responsibility?

Owning a home comes with a load of responsibilities. If something goes wrong, you are now responsible for issues in and around the home. No more waiting around on the landlord to come to fix it. The responsibilities are up to you.


So then, are you truly ready to become a homeowner?

If you answered yes to all four questions, you could be ready to become a homeowner. There are many things to consider when making this decision. These questions are just the start to that journey.

You can learn more about the Habitat home buying program HERE. Even if you don’t qualify you might qualify for a home we can point you to the right resources that better fit your needs. You might even qualify for a home with our sister organization Cross Timber Homes. You can learn more about that program HERE.




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