The decision to buy a house requires careful consideration and research to avoid overspending. Below are a few signs indicating that the time is right to contact a real estate agent and begin the house search. Above all, remember to trust yourself throughout the process and go with what feels right.

How Do You Know When to Buy a House?

1. Stable Income & Savings

Discuss your house buying candidacy with a loan officer or your bank. Review your savings and what you can afford as a down payment and mortgage, as well as your debt-to-income ratio. Calculate this ratio by comparing your monthly income to your debt, which excludes utility and phone bills. The resulting number determines not only what you can afford now, but whether you can pay for house renovations and repairs.

2. Excellent Credit Score

Contact your credit card company to get your credit score for free. A credit score of at least 640 increases your chances of obtaining a mortgage loan because it shows lenders that you are responsible and you pay bills on time. Don’t be discouraged if your score is lower, because you could still qualify for a Federal Housing Administration (FHA) loan.

3. Stay in Your Neighborhood

Contemplate your moving plans over the next five to six years. If you like the town that you live in and don’t want to leave it, contact your real estate agent after you get pre-approved for a mortgage. The buying process gets easier when you have a mortgage loan, and you can better find a home in your community.

4. Tired of Renting

Perhaps you’re tired of giving your money to a landlord and want a property that will increase in value. While renting offers perks such as not paying for maintenance or repairs, it also provides no investment or home customization benefits.

5. Want to Start a Family

You should think about buying a house if your current living space isn’t large enough to accommodate your growing family. Whether you have one child with another on the way or plan to start a family soon, consider a larger house with close access to parks and other amenities.

If you’re ready to buy a house in Monroe County, IL, talk to the real estate agent at RE/MAX First Choice-JoAnn Meier. Based in Waterloo, this realtor has helped clients find their dream homes since 1984. Call (618) 939-6003 today to schedule a consultation or visit the real estate agent online for more information. Follow her Facebook for the latest listings and tips.