Are You Ready?
Owning a home is part of the American Dream. But not everyone is ready for the commitment and financial obligations of homeownership. Before you meet with a REALTOR® or apply for a loan, you need to weigh the benefits and costs of homeownership, look at how you spend your money and ask yourself a few questions. If you buy a home before you’re ready, you risk not being able to repay the loan and losing your home. Be honest with yourself. Are you ready?
Buying a home is a major decision. It is probably the largest purchase you will make during your lifetime. More than two-thirds of the people in this country own their own home. You too can own a home if you follow the steps in this guide. The first thing you need to do is ask yourself a few questions to see if you are really ready to begin the process.
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YES
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NO
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| Do you have a steady, reliable source of income? |
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| Have you been employed regularly for the last two years? |
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| Do you have a credit history? |
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| Do you pay your bills on time? |
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| Is your total debt (all credit cards, car loans, etc.) manageable? Can you afford those debts and a mortgage? |
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| Do you have money saved for a down payment and closing costs? |
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| Can you afford both the mortgage and other expenses, such as electric, water, repair and maintenance costs? |
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| Do you plan to live in the house for two years or more – long enough to build some equity? |
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| Do you have time to take care of a house, including responsibilities such as mowing the lawn and repairing the property each spring? |
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| Do you have time to devote to buying a home right now? Or are other commitments, such as night school, a priority? |
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If you can answer "yes" to most of these questions, you are probably on your way to owning your own home. Next you should look at how you spend your money.
