How to Decide if Homeownership is Right For You

Buying your first home is a huge life milestone. There are many steps to buy a house , and the process can be a long and tedious one.     O...

Buying your first home is a huge life milestone. There are many steps to buy a house, and the process can be a long and tedious one.  


Our greatest achievement in 2021: Our first home!

How do you know if you’re ready to take this big step?

Your Debt is Under Control

You may still have some debt, but if you’re close to the finish line when it comes to being debt-free, now would be a good time to consider home.

Your Credit Score is on the Up and Up

As you pay down said debt, your credit score will rise, and your reliability as a borrower will strengthen.


Credit scores play a major part in the type of home loan you can acquire. You can qualify for most mortgages with a credit score of at least 620.

You Have Steady Income

You may have finally settled into your career and have a steady stream of cash coming in. Not only will this help in the way of being able to save money for a down payment, it’s also an important factor for lenders to see when considering you for a mortgage.


Calculate your debt-to-income ratio. While there is no absolute requirement to meet with this for loans, most lenders like to see a ratio of under 50%.

You Have Money for A Down Payment

Typically, 20% is what’s thought of for a solid down payment on a home. However, nowadays you can buy a home with as little as 3% down on a conventional loan or 3.5% down on an FHA loan.


A large down payment has benefits, as one of 20% down will eliminate the need for you to pay for private mortgage insurance, which protects your lender if you default on your loan.

You Are Aware of All the Costs

Owning a home is much more than a monthly mortgage payment. There are insurance costs, property taxes, utilities, closing costs, and maintenance to consider.


Often surprises come up with new homeownership and you may find yourself needing to foot the bill for things like a broken appliance or roof leak that come out of nowhere.


These should all factor into your budget as you look at your financials.

You’re Emotionally Ready

Buying a home is a long-term commitment. Most mortgages range from 15 to 30 years. Though you don’t have to necessarily stay in your house for that length of time, you should really love the place and area you’re moving into.


You may find yourself with a steady career and income, no need to pick up and move to a new city, or comfortable in a current relationship.


You also have to be sure you’re ready to handle any required maintenance that comes with a home.


If so, these are all signs you are mentally prepared to buy a house.

You Need Space

Sometimes, you simply need a bigger residence to fit your lifestyle. Perhaps your family is growing and you need an extra bedroom or backyard now. Even a slight increase in square footage can make all the difference.

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Mommy Practicality is a home and lifestyle blog that's about positive, informative, 
inspirational and helpful sharing of life experiences of a working mom 
with topics on motherhood, relationships, events, food, travel, shopping, and finances. 
It hopes to influence moms and women to realize 
that it's possible to live a quality life while choosing a practical lifestyle.

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