Ready to take a plunge and buy a house in Surrey? It’s a big decision, but if you’re feeling prepared and excited about the idea of homeownership, it might be the right time for you. Congratulations! Homeownership is an exciting milestone. But before you start attending open houses and looking at listings online, it’s important to make sure that you’re truly ready for this next step.

There’s a lot to consider, from finding the right property to getting the best mortgage rate. But how do you know if you’re really ready to take the plunge? Here are seven signs that you may be ready to buy a house.

• You Have Enough Savings for a Down Payment

One of the biggest hurdles to buying a house is coming up with a down payment. In order to avoid paying private mortgage insurance (PMI). Unless you’re taking advantage of one of the many low or no-down-payment mortgage programs available, you’ll need to have saved up enough money for a down payment on your new home. Ideally, you should aim for 20% of the purchase price, but depending on the purchase price of your home, the minimum you need to put down is 5%

• Your Debt-to-Income Ratio is Healthy

Your debt-to-income ratio (DTI) is one of the most important factors that lenders consider when deciding whether or not to approve your mortgage application. To calculate your debt-to-income ratio (DTI), simply add up all of your monthly debt payments and divide them by your gross monthly income. Lenders typically like to see a debt-to-income ratio (DTI) of 36% or less. If yours is higher than that, start working on paying down your debts so that you can get your debt-to-income ratio (DTI) into a healthier range.

• Your Credit Score is Good

Another important factor that lenders consider when reviewing mortgage applications is the credit score. A good credit score shows lenders that you’re a responsible borrower who pays your bills on time and doesn’t carry too much debt. Most lenders like to see a credit score of 700 or higher. If yours is lower than that, start working on raising it by paying your bills on time and paying down your debts. 

• You Can Afford the Monthly Payments

Of course, one of the most important things to consider before buying a house is whether or not you can actually afford the monthly payments. In addition to your mortgage payment, don’t forget about things like property taxes and insurance, which can add hundreds of dollars to your monthly bill. Also, keep in mind that once you own a home, there are additional costs like repairs and maintenance that need to be factored into your budget as well. 

• You Have a Good Job with Steady Employment

In addition to looking at your overall income, lenders will also want to see proof of stable employment. This means having a good job that you’ve been consistently employed at for at least two years—preferably more. If you don’t have steady employment yet, start working on building up your work history before you apply for a mortgage.

• You Don’t Have Any Major life Changes Planned

Before applying for a mortgage, take inventory of your life and make sure there aren’t any major changes planned in the near future. Things like getting married, having children, or changing jobs could all impact your ability to afford your mortgage payments — so if any of those things are on the horizon, it may be best to wait until after they happen before applying for a loan. 

• You’re Ready to Settle Down in One Place

If you’ve been renting apartments or houses for a while and feel like you’re just going through the motions month after month with no end in sight, then it may be time to consider buying a place of your own. Once you own a home, you’ll have the freedom to stay put for as long as you want — giving you the chance to really settle down and create lasting roots in one community. 

Takeaways

Now is a great time to buy a house in Surrey with many beautiful properties available for purchase. If you’re thinking about making the jump from renting to owning, keep an eye out for these seven signs that you may be ready to buy a house in Surrey. With the help of a Top Realtor in Surrey, you’ll be sure to find the perfect home for you and your family in no time! Give us a call today!