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May 19, 2022

Are You Ready to Buy a Home?

 

Buying a home is one the biggest and most challenging purchases of any borrower’s life. How do you know when you’re ready to buy? And how do you know what your budget is?

Good news is there is plenty of information to help you decide when the right time is for you to buy. It really depends on your financial stability.

Purchasing a home is like selecting a lifestyle. It depends on what type of community you want to spend your time in – such as a rural are or a city high-rise.

Homeownership can be a powerful tool in building wealth for you and your family.

While you dream home might not been in your reach right now, you can still take steps toward owning that home in the future.

 

To qualify for a mortgage, you’ll need good credit, an established pattern of paying your bills on time while still being able to save money. You will also need to consider your monthly income in relation to your monthly debt, called a debt-to-income ratio. The less debt you have in relation to your income the lower the number and the lower the number the better your chances for a loan approval. You’ll want to be at least below 43%.

  • Check Your Credit - You get one free pull from each credit bureau per year. Take a minute to check it over and make sure everything is accurate.
  • Assess Your Spending - Look at your monthly finances to determine what you can afford.
  • Budget for New or Changed Expenses - Adjust your budget to include your potential mortgage payment. Make sure the payment fits your budget comfortably.

Some loan programs offer down payment as low as 3.5% to 5% of the purchase price and there are a few programs that even offer no down payment requirements. In addition to a down payment, you will also need to pay for closing costs, moving expenses and an earnest money deposit. It’s wise to have a healthy amount of cash reserves on hand for these various expenses.

  • Determine Your Down Payment - Determine how much money you need to save to put down on your purchase.

Saving Money + Preserving or Improving your Credit History = The Key to Homeownership

Housing prices and rent can vary from one location to another, but you can use our Rent vs Buy Calculator to estimate the differences.

  • Consider Whether It's the Right Time to Buy

Our Payment Calculator can help determine a monthly payment, but remember to include homeowners’ insurance, property taxes, and homeowners’ association dues in your housing costs. Determine what payments fall in you budget comfortably.

  • Determine How Much You Want to Spend

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                             Divison of Banking Locations                                                                                  Phone Numbers

          Springfield Office                               Chicago Office                                          General Inquires                              TTY

        Division of Banking                         Divison of Banking                                       1-888-473-4858                   1-866-325-4949 

 320 West Washington Street       100 West Randolph, 9th Floor                                                  Divison of Banking

       Springfield, IL 62786                        Chicago, IL 6060                                                                 1-844-768-1713

NMLS# 935629

1701 52nd Avenue, Moline, IL  61265

866-441-1862    customerservice@ruhlmortgage.com

 

For more information regarding licensing, go to www.nmlsconsumeraccess.org

                             Divison of Banking Locations                                                                                  Phone Numbers

          Springfield Office                               Chicago Office                                          General Inquires                              TTY

        Division of Banking                         Divison of Banking                                       1-888-473-4858                   1-866-325-4949 

 320 West Washington Street       100 West Randolph, 9th Floor                                                  Divison of Banking

       Springfield, IL 62786                        Chicago, IL 6060                                                                 1-844-768-1713