Cincinnati Custom Home

5 Signs You’re Ready for Home Ownership

The American Dream is owning a home. Many first-time buyers have a decision to make about how to make the dream come true. Before hitting the house market, think about the following considerations to decide if now is a good time to own a home and the steps to get there.


Good Renter

Paying rent on time along with other utilities is an important part of owning one’s own home. Internet, television and paying the mortgage are all a part of the process of becoming a good potential home owner. There are additional monthly costs associated with homeownership. It is important to understand the cost of it all up front.


Job Security

Nothing says potential homeowner like job security. It is best to have a secure position that will be there for the long haul when looking to secure a property in the future. Uncertainty can ruin any prospects of buying a home. Before making a 30-year commitment to mortgage premiums, make sure to be secure at the job first.


Know What to Look For

Know what kind of home to look for and that it is going in the right direction and right market. Understanding what is desirable will help make the process easier. Start with the following in mind:

  • Know what is important to all family members now and in the future
  • Know how many bedrooms are needed to accommodate a growing family
  • Figure out what type of neighborhood the family wants to live in
  • Think about the work commute


Look at the budget and compare options to the market of interest. Certain markets may not have homes that match criteria and budget but there may be many options to consider on the flip side.


Good Credit

Keep an eye on credit scores. A strong FICO score of over 700 without excessive debt is likely to help the cause. If a borrower’s lifestyle is only sustainable through huge debt, it is likely he or she will get into financial trouble when owning a home. Check periodically in the 12 months leading up to a home purchase as the credit score is foundational to the entire homebuying process.


Get Educated

Learn the homebuying process. Get on the right track by looking at a few key points and do the research:

  • Find a trusted lender for mortgage approval process
  • Read up on down payments to know what is doable
  • Know the debt-to-income ratio and lending rules which cap at 43 percent of debt-to-income ratio to qualify for a conventional mortgage. Borrowers need to aim for spending 28 to 33 percent of net income on housing
  • Have cash reserves which account for the down payment including on-hand savings of three to six months living expenses in case of unexpected emergencies


Never jump blindly into the process of homebuying. Take time to speak with a builder, financial experts and advisors then be prepared for an exciting adventure.


Get prepared to build a beautiful, custom home with Brookstone Homes. We will help you create and build the home you have always wanted. If you are ready to get started, call us to find out how we can help.