How do I know when I’m ready to buy a house?

Homebuyer Forum
1

I’m 21F and my husband is 24M. We’ve been talking about buying a house but we’re feeling a bit lost on how to prepare. Things like credit score, employment history, and income are all super confusing for us. My husband works two part-time jobs, making around $15 and $18.50 per hour, and he’s in line for a promotion soon. I just started a new job after being unemployed for a year. Our credit scores are decent, and we have some student loans, but we’re trying to figure out if we’re ready to start this process now or if we need to wait. Any advice would be really appreciated!

2

First off, make sure you’re planning to stay in the area for at least 2 years. Also, keep working on improving your credit score!

3

Oren said:
First off, make sure you’re planning to stay in the area for at least 2 years. Also, keep working on improving your credit score!

Thanks for the tips! We’re definitely trying to boost our scores. What else should we focus on?

4

You usually need two years of qualifying income from your tax returns. You should talk to a loan pro about your situation.

5

Fenn said:
You usually need two years of qualifying income from your tax returns. You should talk to a loan pro about your situation.

I’ve been filing taxes for my side jobs too. Does that help with qualifying income?

6

Definitely talk to a loan officer, especially one familiar with USDA loans. They can help you prequalify.

7

Reilly said:
Definitely talk to a loan officer, especially one familiar with USDA loans. They can help you prequalify.

Thanks! I didn’t think of that. How do I find a good loan officer?

8

Keep your debts low since they impact your debt-to-income ratio. Try not to use credit cards too much.

9

Nuri said:
Keep your debts low since they impact your debt-to-income ratio. Try not to use credit cards too much.

Got it! We’re working on keeping our expenses down. Thanks for the advice!

10

Make sure to save for a down payment in case you fall outside USDA criteria. You might need around 3.5% down.

11

Pace said:
Make sure to save for a down payment in case you fall outside USDA criteria. You might need around 3.5% down.

That makes sense. Any tips on how much we should aim to save?