5 signs you're not ready to buy a house

Five signs you're not ready to buy a house

UPGRADE DAY

Whether you are 20, 30 or 40 years old, the purchase of a house is in itself a particularly important event, in the sense that it requires the investment of a large sum of money, among others. Indeed, the various steps surrounding home ownership generally cause a lot of stress, especially in terms of the mortgage loan.

This is why many people wonder if they are really suitable for buying a home. 

Here are five signs that will tell you if you are ready to buy a house… or not!< /p>

1) No savings for a down payment

In short, it is essential to give a good amount of money for the purchase, if only to reduce the amount to be borrowed and prove to the seller that the offer is serious. Also, be aware that to be comfortable and cover the ongoing costs of a home, you need to provide more than the 5% down payment required for CMHC financing or for conventional 20% financing.

< p>Therefore, for a property worth $600,000, a 20% down payment would then be $120,000. 

2) Not tempted to find out if you qualify for a mortgage

There are many mortgage lenders out there, all offering different deals that can make a difference to your wallet of thousands of dollars over the years. 

In short, if you haven't taken time to compare the various mortgage rate offers and financing terms, or even seek the help of a mortgage broker specializing in the field, this means that you may not be ready to invest in the buying a home.

3) Not pre-approved for a mortgage

Having such a pre-approval shows the seller of the property that you are financially fit to buy a home, but more importantly it gives an idea of ​​how much you are able to borrow. Depending on the institution you are dealing with, you can protect your rate normally between 30 to 120 days. Finally, in which case the interest rates would be lowered while waiting for pre-approval, the lender will give you the lower rate.

4) Not thought about the type of house desired

Obvious to some, unimportant to others, but know that if you haven't thought about the style, age, size or even neighborhood of your future home, it's probably a sign that you don't know. 're not ready to become a homeowner yet!

5) Credit score too low

To be able to buy a house, the credit score must be is normally above 650. It may be that by using alternative lenders an individual may be able to qualify for a mortgage, but at what cost? 

Therefore, before buying a house , be sure to build an impeccable credit rating that will inspire confidence.

Tips

If you do not have down payment, a relative can make a donation to you and it will be accepted by financial institutions. your credit limit or not using it until 35% to 50% of the credit to which you are entitled.