FIRST TIME HOME BUYERS SERIES WEEK TWO | FINANCIAL HEALTH

Assessing your finances is crucial to determine if you're ready to take on the responsibilities of homeownership. 

The first step is to assess your income, expenses, and debt obligations. This will give you a clear picture of your financial standing and help you understand what you can comfortably afford.

Your debt ratios are key factors in mortgage qualification. Lenders use these ratios to assess your ability to manage additional debt. I’ve got a great worksheet you can download directly from my website to help get you started. Click the link in my bio for more information.

Your credit score also plays a vital role in determining your eligibility for a mortgage. Past decisions with credit will determine your creditworthiness to lenders for the future. If you’ve never looked at your credit bureau, homework for this week is to access your full credit report for FREE from sites like Borrowell. They’ll also offer Personalized Tips To Improve Your Score if needed.

This is also a great time to evaluate your current savings and determine how much you have now for a down payment or if you’ll need to keep saving a little longer. We’ll get into this further next week.

If you haven’t already, download a copy of my  First Time Home Buyers Guide to help get you started and I'll be back next week where we’ll talk down payment.