Are You Ready to Buy a House?

Web site: Travelers
Material excerpted from: Travelers – Blog

Home prices continue to rise, but the dream of homeownership remains strong—and for good reason. Owning a home can be a powerful way to build wealth and long-term stability. Still, buying a house is a major financial and emotional commitment, so it’s important to be sure you’re truly ready before taking the leap.

Am I ready to buy a house?

Before you start packing boxes, consider whether these pieces are in place:

You have good credit. Credit scores play a big role in mortgage approval and interest rates. Generally, higher scores mean lower monthly payments.

Your debt is manageable. You don’t need to be debt-free, but your total housing costs should ideally stay under 28% of your gross income, with total debt under 36%.

You’ve saved for a down payment. A 20% down payment can lower your monthly costs, though some loans allow less. Keep in mind that putting less than 20% down may require private mortgage insurance (PMI).

You can cover closing costs. In addition to your down payment, closing costs—such as inspections, appraisals, and title fees—often add 2%–5% to the purchase price.

You can afford ongoing monthly costs. Beyond the mortgage, factor in property taxes, homeowners insurance, utilities, HOA fees (if applicable), and maintenance.

Your income is stable. Since a mortgage is a long-term commitment, reliable income is essential for long-term comfort and security.

If you’re ready to buy

If many of these boxes are checked, here are a few smart next steps:

– Determine how much house fits your budget.
– Compare mortgage rates and fees from multiple lenders.
– Get a pre-approval letter to strengthen your offer.
– Choose a knowledgeable real estate agent.
– Stick to your budget as you begin shopping.

Not quite there yet?

If you’re not ready today, that’s okay. You can still take steps to prepare:

– Improve your credit by paying down debt and making on-time payments.
– Build your down payment with consistent savings.
– Create a realistic budget.
– Set aside emergency savings for unexpected home repairs.

Homeownership can offer stability, equity, and long-term benefits—but only when the timing is right. Taking the time to prepare now can help ensure a smoother, more confident transition when you’re ready to buy.

Whether you’re just starting your search or about to sign on the dotted line, making sure you have the right protection in place can give you real peace of mind.

Call today at 1-800-568-SAVE (7283) or contact us by email at service@hometowninsurance.com for helpful information.

We work for you!