1. How to Know If You are Ready to Buy a Home

2. For many, the American Dream is still to buy their own home. However, not everyone is at the place in their life to achieve this dream. They may lack funds, steady employment or even the desire to be a homeowner. Others want to move into homeownership now, but they’re not quite ready. Before you jump into the home-buying process, you need to decide whether you are ready or if you should wait. http://www.amysims.com

3. Do You Know Your Credit Score? One of the first things you should do before taking any action towards buying a home is to check your own credit report. You can get a free report from annualcreditreport.com for all three bureaus. Read over your report to see if you have any negative information or errors that need to be fixed or improved. You can also purchase your own credit score from the bureaus, which will give you an idea of where you stand. All home loans have minimum credit score requirements, and some have more stringent qualifications if you fall below their ideal score range. When you know your credit score, you can decide if you need to work on your credit or if it’s good enough to qualify for a loan. http://www.amysims.com

4. Do You Have Money for a Down Payment? You’re going to need money when you buy a house even if you get a loan that offers 100 percent financing. There are few of those available, so expect to pay at least 3.5 percent down with an FHA loan. You may also need money for closing costs and deposits on utilities at your place in addition to moving costs. Take time to figure realistically how much it will cost you to get moved into a new home and start saving. If you don’t have the money on hand, wait to start house-shopping until you do. http://www.amysims.com

5. Do You Know the Loan Options Available to You? Before you start searching for a home, you should have an idea of what types of loans you qualify for. You can research online to find out the requirements and the benefits for each loan product. For instance, an FHA loan is for first-time buyers and only requires 3.5 percent for a down payment. It also accepts lower credit scores. A VA loan is designed for veterans, while a USDA loan is applicable only in rural areas. A fixed loan gives you a set payment and interest rate for the life of the loan while an adjustable rate mortgage may start out lower but adjusts over time. Choosing the right loan product is essential to affording your new home and will make the process of buying a home easier. http://www.amysims.com

6. Do You Know What to Expect as a Homeowner? Being a homeowner is a lot different than renting. You can’t call someone else to take care of maintenance issues. You also can’t just move if you don’t like the neighborhood. Before you decide that now is the time to buy, think about what being a homeowner means. While it is the dream for many, not everyone is ready for that responsibility at the same time. Plan your budget to put money in savings for unexpected repairs or for replacing major components like the furnace or roof. When people calculate the cost of purchasing a home, they often only consider the monthly payment. With maintenance issues and preventative care, you have more responsibility and often more costs as well. http://www.amysims.com

7. Are You Ready to Buy? You must look at all aspects of purchasing and owning a home to decide if it’s right for you. Talk to other homeowners to learn what it’s really like. Think about your future. Do you plan to move for your job or another reason in the next two or three years? If so, it may be wise to wait until then to purchase your home. Selling a home in such a short time can be difficult if you have limited equity. If, after careful consideration of all the factors involved in buying a home, you still feel you are ready to make the purchase, talk to an experienced real estate agent and lender to learn the details about the next step you are taking. When you are prepared for the process, it can be an exciting adventure that you won’t regret. http://www.amysims.com

8. Questions? Comments? Website: http://www.amysims.comhttp://www.amysims.com Amy Sims info@amysims.com 949.559.5959 Sources: http://www.amysims.com/ http://www.bankrate.com/finance/real-estate/buying-your-first-home-signs-youre-ready- 1.aspx http://amysims.com/blog/do-you-know-if-you-are-ready-to-buy-home