Being a homeowner is a huge responsibility that only begins with your mortgage preapproval. Purchasing a home requires an ongoing financial commitment. Not only will you be making your monthly mortgage payment, but you will also be required to handle any maintenance or repairs necessary to keep the property in good shape. Because of the gravity of this responsibility, we at Starboard Financial recommend careful consideration before making a home purchase.
Before you fill out your loan application and secure your preapproval, ask yourself whether you are financially ready to take on a mortgage. Some issues to think about include:
- The stability of your income. If your income is unstable, taking on a mortgage isn’t recommended. However, if you have a good, reliable job and you don’t anticipate any changes in the near future, you may be ready for homeownership.
- The amount of income you earn. The amount of income you earn will determine how much you can afford to spend on your home. Do you earn enough to buy the type of home you need?
- Your debt. If you owe other debts, such as credit card debts or student loans, their monthly payments will affect your ability to afford your mortgage. If your current debts are high in relation to your income, consider paying them off before you apply for a mortgage.
- Your resources. When you take on a mortgage, it is always a good idea to have some extra money put away in case of an emergency, such as the loss of your job. Do you have enough money in the bank to cover your mortgage payment for a few months if something unexpected happens?
- Upcoming financial needs. If you are anticipating large expenses in the future, such as college tuition or the purchase of a vehicle, think twice before you take on a mortgage.
If you still aren’t sure whether or not you are financially ready to buy a home, please contact us Starboard Financial. We are always happy to provide one-on-one assistance to give you the peace of mind you need when taking on homeownership.