5 Telltale Signs That You May Not Be Ready To Buy a Home

If the dream of owning a home is on your bucket list, you’ve likely combed through listings, narrowed down your home preferences, and even attended a few open houses. But while you might be mentally ready to buy a home, your financial situation might tell a different story.

“Renters who are ready for homeownership should have their financial house in order before contemplating a purchase,” says Ben Creamer, co-founder and managing broker of Downtown Realty Company in Chicago. “I tell my clients to approach buying a home as they would for their job—it requires planning, diligence, and structure to be successful.”

There are a number of monetary factors that can rule you in—or out—as a viable candidate for a mortgage. Here are some signs you’re not ready to be a homeowner.

Not Shopping Around for a Mortgage Can Cost You

Shopping around for a mortgage should be on every potential home buyer’s checklist. But a study by the Consumer Financial Protection Bureau found that only about half of home buyers shopped around for a mortgage, meaning the other half considered only one lender or broker.

That’s great—if you’re a lender. But you’re a borrower, which means you want the best rates and loan terms in your area. And if you don’t loan shop, you’re very likely to make these expensive mistakes.

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