Lark Real Estate Group

Your Trusted Voice for
Real Estate in DFW

September 19, 2023

How do I know if I’m ready to buy?

The neighbor upstairs plays their drums at 10pm. The apartment next to you has a dog that barks non-stop. You have to drag your groceries up 2 flights of stairs after walking across the parking lot in the rain. I get it- you are done with renting! You certainly have the motivation to buy a house but how do you know if you are truly ready to buy? Well, here are three things that will help you know if now is the right time. 

  1. What’s your 3-5 year plan? If you think that you will be relocating in a couple of years that I would suggest to rent. It takes a little while to build up your equity position in a home to be able to sell it and not lose money. Now, if you are thinking of living in the home for a couple of years and then keeping it as a rental, then it could be a good time for you to buy.
  2. How much money do you have saved? It’s never a good time to buy if you aren’t financially prepared. You need at least 3.5% for your down payment, and extra to cover the cost of your closing costs, moving expenses, emergency fund, and any repairs you may want to make to the home after closing. 
  3. What’s your credit score? I’ll admit, when I bought my first house I had NO CLUE what my credit score was. It was good enough for me to buy a house and that’s all that mattered to me. Looking back, I wish I had paid a little more attention to understand how my credit score affected the loan. Most lenders want to see your credit score at 620 or above- there may be some exceptions. However, the higher your score is, the better your interest rate will be. So if you are right on the cusp, working with a lender to help understand the best path forward to raising your credit score the right way, could save you money in the form of a lower interest rate. 

If you found this helpful, book a call and let’s get started on the path to building your equity!