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Many people aspire to become homeowners.
Buying a house establishes you in a neighborhood and lets you build equity with every mortgage payment.
Housing costs make this goal more challenging.
Wondering if youre ready?
These are some of the signs that you arefinancially ready to buy a house in 2025.
He has remodeled, fixed and flipped numerous homes.
He recommended building up your funds so you could make a bigger down payment.
Thats what Ryan Dossey, cofounder of SoldFast, a real estate brokerage and home buying franchise, believes.
This will help alleviate stress should there be any unexpected repairs or gaps in employment, Dossey said.
You Have a Post-Purchase Budget
When you buy a house, your expenses will go up.
Having three to six months of expenses set aside can give you peace of mind if unexpected costs arise.
Its also helpful to have a post-purchase budget in place forhome maintenance and repairs, which are inevitable expenses.
I wouldnt be shy about making offers below the listed asking prices either.
Were seeing an uptick in sellers with listed properties requesting we buy them for cash at a discount.
There is no perfect time to buy a house.
Moving further away from a big city can also lead to more attractive prices.
French explained the growing demand for suburban and exurban areas will continue in 2025.
Researching properties in these areas can also lead you to more affordable homes.
Suburban and exurban locationsoffer more space, nature access and often a lower cost of living.
This is ideal for those looking for a flexible lifestyle while maintaining access to urban amenities.
Homeowners also have to pay other regular costs, like property taxes and maintenance.
Thats why French and Dossey both recommend that aspiring homeowners have stable incomes before buying homes.
Consistent income is a key indicator of financial stability.
Lenders will look at your financial history, but its also good to check in with your employer.
However, youll need a much higher score to make homeownership more attainable.
Dossey explained what number to go for.
Credit scores around 660 will get you anaverage mortgage rate.
This is referred to as prime and reflects rates between 660-719.
If youre between 580 to 619, youre subprime and its going to be expensive and tricky to qualify.
If youre near the edge of a tier, it might be worth working to bump up your scores.
French also advocated for building credit while mentioning how the debt-to-income ratio can also impact your options.
Together, these factors show that youre prepared to take on the financial responsibility of a home.
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