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Prospect Financial Group, Inc.

Determining if You are Ready for a Mortgage

Thursday, February 6, 2014 - Article by: Prospect Financial Group, Inc. - Message

Purchasing a home is a very big decision - probably one of the biggest decisions you will make in your life. Make sure you are ready to commit to a monthly mortgage payment for the next 30 years before making the plunge into homeownership.

One of the first things you should take into consideration is how long you will be living in the home. If you only plan on living there for a couple of years, then purchasing might not be the best move. In order to make a return on your investment, you want to plan to live in the home for at least 5 years or more.

Second, if you only have enough money to cover the down payment, then buying a home is probably not the right decision. A lot of expenses come along with a home in addition to the down payment. You will have to pay for closing costs, homeowners insurance costs, moving expenses, etc. Plus, once you move into your home you may need to do some additional work depending on the condition. Lenders also require that you have a minimum of several months reserves to cover your mortgage payment in case you become unemployed or another emergency arises.

If you currently have a high amount of debt or a low credit score, buying a home right now is probably not the best timing. Furthermore, lenders will not approve you for a purchase if you have too much debt or too low of a credit score. If this is the case for you, work to pay down some of that debt and to boost your credit score.

If you are still unsure if you are ready to become a homeowner, give Prospect Financial Group, Inc. a call at 858-605-0952. We can help you go over your situation and determine if now if the right time to become a homeowner.

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