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Many people start thinking about buying an Orange County home for sale when they feel ready to settle down.  Maybe they’ve just gotten married or they’re thinking about starting a family.  Or maybe they’ve just gotten well-settled in their careers, so they think that it makes more sense to buy a home rather than continue renting one.  If you’re considering buying a home, read on to figure out if you’re ready to do so.

1. Do you have enough money for a down payment? This is usually one of the things that deters people looking to buy a home.  You need to have, at the very least, 5% of the total worth of the home to put down as a down payment.  The more you can put down right at the beginning, the better your chances of being approved for a mortgage.  If you have enough savings or your family is willing to help you out, you may be ready to buy a home.
2. Do you have a steady source of income? If you’ve just left a job and started your own business, you may not be in the right financial place to buy a home.  At one point of time, it’s best to focus on one new venture.  So if you have a new job or a new business venture going, focus on that and not on buying a home.  A year or two down the line, you can reconsider.
3. Do you have a good credit history? You could have savings, a steady source of income and still not have a good credit history.  Maybe you have a number of loans, either personal or for your business.  Or maybe you went through a rough patch and are still paying off your credit cards from that time.  It’s really important to make sure that your credit history is good before trying to buy a home.
4. Does buying a home make financial sense? In general, buying property is always a good idea.  Not only does this ensure that you’ll have a roof over your head, it also makes a good investment.  If you choose not to live in the property at some point in the future, you’ll be able to rent it out or sell it, hopefully for a profit.  Still, there are times when buying a home may not be financially sound, such as when you have a number of loans or are planning to move jobs.

Contact us for more tips on figuring out if you’re financially ready to buy a home.