Are You Ready to Be a Homeowner?
Being a homeowner for the first time can be both an exciting and overwhelming endeavour. Before venturing into home ownership, it’s important to get a few wrinkles ironed out first. Ask yourself these two main questions – and answer honestly – in order help you determine whether you’re ready to take that leap into home ownership.
Take a look at your finances – How do your debt and credit score look?
First and foremost, what do your credit card bills look like, or any other financial loans that may owe (like your car payment and student loans)? It is crucial for you to not only assess how much money is flowing inward, but also how much is flowing outward.
Not all debt is bad. But when making assessments of your loans and credit card debt, it is imperative to be honest with yourself. If you know the reason why those bills pile up each month – for example, if it might be due to an overzealous tendency to purchase, combined with a lack of funds to support it – then you might not be ready to venture into owning a home in Ottawa just yet.
Depending on your ability and promptness for paying back that debt, your credit score will also be affected. Credit scores are what lenders use to assess how well you handle credit, which could affect your ability to secure a mortgage. So the bottom line is that your debt can be a symptom of a greater problem – make sure you know where you stand with it so it doesn’t impede you in the future or your chances of being approved.
Do you have a steady income?
The down payment on a home will most likely be one of the largest investments you’ve ever made, up until that point. Before thinking about purchasing, you must be sure that you cannot only afford the down payment, but also the accompanying fees that come along with home ownership. Having a steady and reasonably secure source of income is important. It is a little more difficult to secure a mortgage if you are self-employed, so make sure you organize your financials and can show proof of steady income.
Taxes, closing costs, lawyer fees, insurance, utilities, and so forth are just a few of the many additional fees that generally accompany the purchase of a home – not to mention buying furniture, paint, and refreshments for the housewarming party! Seek some financial advice from a mortgage advisor or a real estate agent before venturing forward in order to ensure that you can avoid any unforeseen surprises down the road.
If you’re looking at the prospect of purchasing a home for the first time, it’s important to take at look at your finances and assess whether or not you’re prepared. Purchasing a home can be one of the most rewarding investments you make, but you always want to ensure that you’re equipped with the essentials before purchasing. Seek the advice of a financial expert to determine if home owning is the right move for you.
Get in touch with The Geoff & Bobbie Team. We’re on your side and can help you decide if home ownership is the right option for you and your life objectives. If buying a home in Ottawa is the right decision, we’ll get started together!