When deciding to buy a home, the cost isn’t the other thing that matters, the timing must be right for you as well. How do you know if you’re ready?
We recommend taking baby steps for true financial security; meaning you should set aside $1,000 as a beginning emergency fund, pay off all non-mortgage debt, followed by building up your emergency fund until it reaches between three and six months of expenses.
Once you take those first 3 steps, you’re ready to buy a house! Here’s why:
- You won’t have to slow down paying off your debt to save for a down payment, which allows you to be debt-free much sooner.
- You’ll be prepared for the emergency situations that are bound to happen when becoming a homeowner
- You’ll have room in your budget to navigate the remaining steps toward homeownership:
- Invest or retirement
- Save for children’s college
- Pay off your home early
- Build wealth and give generously
Determining the right time for you will allow you focus on other things that come with a new home! Contact a USA Mortgage local lender today to learn about everything that takes place before, during, and after the homebuying process.