How to Know If You’re Ready for a Mortgage

Home FinancingGetting your own house is one of the biggest financial decisions that you have to make in your life. And one way you can do it is to apply for a loan from a mortgage company in places such as Fort Myers. But how will you know if you’re ready for such a huge financial commitment?

1. Make sure you’re financially capable.

If you have a steady source of income for two years prior, you’re most likely stable enough to apply for a mortgage. It would be easier to have your loan approved if you have more than two years of steady employment. Most lenders will check your employment history as a factor in approving your loan.

2. You have a good credit score.

Most lenders no longer require borrowers to have a perfect credit standing when applying for a mortgage. In fact, you only need to have at least 640 to increase the odds of getting your loan approved.

Lenders also review more than just your credit score. If you don’t have any single missed bill payment for the past year, then this is a good sign that you’ll qualify for a mortgage.

3. You have enough money for a down payment.

Depending on which type of loan you’re applying for, you need to pay at least 3–20% of the purchase price up-front for a mortgage. So, ensure that you have extra savings beefed up someplace safe so you can cover the down payment right away.

4. You don’t have any plans of moving somewhere.

If you don’t have immediate plans on moving to a new city, then buying a property is an ideal option for you. With the constant rise of inflation and home prices, buying a good home will surely be worth more than what you initially paid for in the next couple of years.

Owning a property is a great investment, especially when you are sure you’re ready. So, it’s always best to work with a certified mortgage expert to know the available options for you so you can finally get your own home.