Make Ends Meet: How to know if you’re ready to be a homeowner

LOUISVILLE, Ky. (WAVE) - It has been called a piece of the American dream. A home, a place to call and make your own.

This is the generational wealth passed from family member to family member that helps grow and support future generations.

The possibility of owning a home may seem out of reach as we look at the state of our economy and the current housing market, but the dream becomes more of a reality if you get as much as you can in order before you start the search.

Nathan Grant is a Senior Finance Industry Analyst for Moneytips.com. Grant stressed that buying a house is not something you can do in just one day. It takes preparation, planning and a little knowledge that doesn’t hurt, especially when the economy is as stressed as it is today.

“Regardless of what’s going on externally, like the market that we’re currently in or if things improve or get worse, there are a lot of things you can focus on that are going to be independent to you,” Grant said.

The market we’re currently in shows record-high mortgage rates, record-high home prices and an extreme lack of supply.

”Focus on those things that are within your control,” Grant said.

Moneytips.com lists five signs you are ready to be a home homeowner: You have consistent income. You are responsibly managing your debt. You have proper credit utilization ratio. That’s the amount of revolving credit you’re using divided by the total credit available to you, and you’ve saved for a down payment, and you understand the cost of homeownership.

”Those are the things you should really focus on,” Grant said.

Grant also suggests making sure your credit score is in tip-top shape.

“If you haven’t checked your credit report in a while there could be something on there that’s affecting your credit score that you don’t even know about,” Grant said. “If something is there and showing up that’s not legitimate you can get that removed.”

If you believe you are prepared to be a homeowner, and you are ready for a piece of the American dream don’t end up house-poor. In other words, don’t end up spending more than you can afford, which includes not only the mortgage payments but property taxes, insurance, maintenance, and utilities.

For the moneytips.com mortgage calculator, click or tap here.

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