Are You Ready To Get A Mortgage And Buy A Home?

We all want the American Dream of owning our own home. If you're a potential first time home buyer, this prospect can be both daunting and exciting all at once. You may ask yourself if you are ready for this big step or not.

The way to know whether you are ready to get a mortgage and own your own home is to make sure you:

Are financially fit

Are responsible with your payments

Have good credit

Have a solid income

Have researched the details of your potential mortgage agreement

Being financially fit means that you have some money in the bank. In order to afford an ongoing mortgage payment each month, you need to have some money saved up just in case. A mortgage payment is a big bill that won't disappear if you have a bad month at work (for example, if your income fluctuates based on tips, commissions or other criteria). You must be prepared for the worst. If you miss a payment, this could jeopardize your interest rate or, worse, put you into foreclosure.

You must stay responsible at keeping up your payments. Are you ready to make this commitment? Do you have a history of missing a payment on a credit card or other bill? A mortgage may not be something you're ready for.

Do you have a good credit history and/or credit score? This will influence whether you will qualify for a reasonable interest rate, and could determine whether you qualify for a mortgage at all!

How much money do you make? Again, are you ready for this bill? Sit down and write down all of the bills you have and compare it against your monthly income currently. If you're thinking about getting (or are already applying for) a new (or second) job, that doesn't mean you can bank on that happening. Wait until your new job has been secured before you spend the money you don't have!

Have you truly read the fine print in the potential mortgage agreement that has been offered to you? Make sure you sit down with a third party, like a friend or family member (or even an attorney), to determine whether this is a fair deal. You need to know details and stipulations, the what will happen if scenarios, before you commit. And don't rely exclusively on the explanation given to you by mortgage specialist (who is biased and may deceive you).

Owning a home is a beautiful feeling, and a wonderful investment opportunity. This is a good time to buy! Make sure you are ready and if you are, go for it!