Are You Ready to Buy a Home in Sexsmith, AB: Signs That You’re Prepared

Thinking of buying a home in Sexsmith, AB? If so, it’s important that you’re prepared for the process. Buying a home is a big decision that comes with even bigger responsibilities. Here’s how to determine you’re ready for this investment.

You Have Saved Enough for a Down Payment and Other Costs

An important factor to consider when buying a home is finances – the most major aspect of which is how much you have saved for a down payment. Depending on the mortgage you choose, you’ll need to pay anywhere between 3 percent up to a high of 30 percent of the purchase price as a down payment. In addition, you will also need to pay for closing costs which can add up to several thousand dollars.

You Have a Steady Income

Lenders will always want to see that you have a steady income before they can trust you with a mortgage. They do this to make sure that you can pay back the mortgage amount every month. If you’re self-employed or have a variable income, it may be difficult to get approved for a loan so you might have to look at unconventional lending services.

You Have Researched the Market and Know What You Can Afford

Before you start looking at homes, do your research and figure out what you can afford. The general rule is that you can afford a mortgage that’s 2 or 2.5 times your gross income. Also, there are a number of online calculators that can help you determine how much house you can afford based on your income and debts. The mortgage calculator by Zillow is a good tool you can use for this purpose.

You Have a Good Credit Score

Your credit score is one of the most important factors in determining whether or not you will be approved for a loan. If you have a good credit score, you are more likely to be approved for a loan with a lower interest rate. Credit scores factor in your payment history (35%), the amount owed (35%), the credit history (15%), and the credit mix (10%). If you have missed any payments or have a lot of debt, it may be difficult to get approved for a loan.

Ready to Buy a Home in Sexsmith?

If you’ve been thinking about buying a home in Sexsmith, AB, but are not sure if you’re ready, these signs should give you some clarity. At C. Moore Realty Ltd – eXp Realty, we can help you find the perfect home for your needs. Call us today at (780) 228-3469.