Are You Financially Ready to Buy Your First Home? Here’s How to Know.

Before jumping into an open house or making that big decision, take a step back and evaluate your financial situation.

Buying a home is one of the biggest financial commitments you’ll ever make, and rushing in without proper preparation can lead to serious financial strain.

You get the keys to your new home, but within months, you’re blindsided by unexpected expenses or career changes. Without an emergency fund or stable income, that dream home could quickly become a financial burden. On top of that, a less-than-perfect credit history might result in higher mortgage rates, draining more of your hard-earned money. The stress of being financially unprepared can rob you of the joy of homeownership.

Start by adopting these financial best practices to ensure you’re ready for the journey:

• Income Stability. A consistent income for at least six months can provide reassurance to lenders and yourself.
• Emergency Fund: Prepare for the unexpected by saving at least six months of living expenses, so you can handle life's curveballs, from job loss to new family members.
• Clean Financial History: Review and clean up your financial history before applying for a mortgage to avoid surprises and secure a better mortgage rate.