If you are thinking about purchasing a home for the first time, all of the considerations may be overwhelming. Making a property purchase can be a daunting prospect.
Of course, whether you are ready to purchase property or not requires a lot of self-reflection, but there are practical considerations as well. According to Findlaw, if you are thinking about purchasing property, it is important to think about your current income, credit history and current financial situation.
What should I know about my work and credit history?
If you are thinking about purchasing property, it is advisable to have had steady employment and income for at least two years. Before getting a mortgage, you want to be as sure as possible that you will be able to continue to pay the mortgage for the indefinite future. If you have changed jobs in the past two years, how did your salary change? Have there been any gaps in your employment? If so, what caused these gaps and, again, how did it affect your salary?
Credit history is also extremely important. If you are having trouble paying your bills on time and you have a large credit card balance, purchasing property not only may not be a good idea, but it may be nearly impossible for you to get a mortgage. at minimum, you will want to ensure that your credit is in good standing prior to purchasing property.
What should I know about my current financial situation?
Purchasing a house is more than a mortgage. You will also need to ensure that you can pay a down payment and cover any closing costs associated with the property. If you are having a difficult time maintaining a constant savings account, purchasing a home will be very difficult.