Use these expert-recommended tips to determine if youre ready to purchase your first home.
So how do you know if youre truly ready to take the leap?
To help you determine whether youre ready tobuy a home, experts are sharing their top tips.
Credit:Getty Images / Drazen Zigic
CynthiaMeyer, a certified financial planner with Real Life Planning, recommends regularly keeping tabs on it.
A score of 760 or above typically earns you the lowest interest rate the market offers.
says Daniel Harbuck, a realtor and founder of Helpful Realty, a real estate benefit corporation.
you could ask local utility companies or the current homeowner for estimates.
Youll also need to set aside maintenance savings every month.
Meyer says about 1% of the purchase price, divided by 12, is a good rough estimate.
There are always unexpected costs, she says.
We know theyre going to happen when you own a home, we just dont know when.
Dont forget to factor in non-house-related savings, like retirement and travel funds.
Divide those debts by your pre-tax monthly income, then multiply by 100.
This is your DTI.
Mortgage lenders typically like to see a DTI of 36% or lower, though higher doesnt auto-disqualify you.
Plus, youll need a good broker to get you a pre-approval letter if you decideits time to buy.
