Your Homebuyer Readiness Checklists

May 13, 2019 | Financial Literacy, News

Before purchasing a home, it’s important to assess your personal and financial readiness. After weighing the pros and cons of owning a home, we have listed a few great general questions below to help you self-assess your personal situation. These questions can help you determine whether you are ready to buy a home.

  • Do I have a regular source of income?
  • Has my income been stable for at least the last two years?
  • What is my credit score?
  • Do I have a good history of paying bills on time?
  • Will I be able to pay my bills and other debts in addition to monthly mortgage payments, taxes, insurance, and repairs?
  • Have I saved enough month for the downpayment and closing costs?

The next step in assessing your financial readiness is determining what you can afford, both in terms of monthly housing-related costs and the total cost of a home. This will help you figure out how much home you may be able to afford. Build a budget to help determine how much you can afford to spend, and be sure to include potential mortgage payments and home-related costs. Below is a checklist of home-related costs to add to your future budget as a homeowner.

Paying for Your Home:

  • Mortgage Payments
  • Principal
  • Interest
  • Taxes
  • Insurance

Home-Related Costs:

  • Utilities
  • Repairs
  • Association Fees (if applicable)

Once you have completed your lists and drafted a budget, NAFSA’s Financial Literacy Program has a digital module called Considering Home Ownership that can help you factor in the many other steps and roadblocks to becoming a homeowner. If you would like to explore more modules to help you plan for your financial future, check out NAFSA’s Financial Literacy Program here: https://nafsa.everfi-next.net/

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