Six signs you can afford a new home - even if it doesn't feel like it
1. You have enough money for the down payment. The most common struggle many people face when looking to buy their first home is the one of saving up enough money for the down payment. If you can afford to put the money down or are close to being able to do so you’re half way there! Excel Homes offers down savings payment plans (DPP for short) which helps to make putting down a down payment much easier. You will put an initial amount down at signing and pay the rest in increments each month until you take possession of your house.
2. You’re free of other debt. If you have debt in other areas of your life the idea of taking on a mortgage can be intimidating. However, if you’re in a good place and don’t have overly expensive car loans, credit card debt, student debt, etc. then you may just be in an optimal position to take on mortgage payments. While some debt can be positive too much of it will leave you feeling strapped for cash and house poor. Make sure to take hold of your existing debt before adding other financial commitments into the mix.
3. Being able to give up your guilty pleasures. Let’s admit it - we all have our vices that hurt our bank accounts in some way or another. Some of us enjoy a latte in the morning while others prefer a glass of wine at night. These tiny indulgences add up over time and can impact your financial standing more than you may think. Can you go without your guilty pleasure to make your dreams of homeownership a reality? If the answer is yes, get started today! Each week put the money away into a savings account that you would have otherwise spent on your favourite indulgences - you will be amazed with how much money you have saved!
4. You’re able to pay the essentials and still have money left to spare. Record low interest rates and the looming introduction of the new mortgage rules in January 2018 make purchasing a house right now a no brainer. If you can afford to pay all of your bills and live comfortably then you can afford to buy a house. Don’t be afraid to make the investment in yourself and your future if you can afford to do it.
5. You have a good credit score. While you can have all of the money in the world for a down payment if you credit score leaves much to be desired you may not actually qualify to purchase a house. A high credit score means that it will be easier to obtain a mortgage at a lower interest rate. If your credit score needs a bit of boost take some time to work on improving it before you decide to buy a house, or any other large purchase for that matter. A low credit score will result in higher monthly payments which can prove to damaging to your budget.
6. You’re willing to compromise on some things. Buying a house is a big commitment and times will arise when you need to be flexible. If buying a house is your ultimate goal and you are willing to negotiate some things, such as location or upgrades, you’re probably ready to take on the responsibility of homeownership. If you’re willing to compromise on your commute you can end up saving yourself a lot of money off of the purchase price!
