Your Homebuyer Readiness Checklists
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/
