_{SOURCE: nerdwallet.com}

Houses are flying off the market!

Experts say it’s currently a seller’s market, with homes selling quickly and for higher prices. But is it still a good time for buyers to make a move? If you can confidently answer all of the following, then you’re ready to move-in to your new home:

Are you prepared to put down roots?

Think about your life goals, relationships and interests. How long can you see yourself living in this location?

Ideally, you’d want to remain in the home long enough for rising property values and your equity to exceed the costs of buying and selling, including real estate commissions and mortgage closing costs. That will typically take several years.

You could also be subject to capital gains taxes if the home appreciates in value and you sell it after less than two years.

How’s your job security?

A mortgage is a big commitment and can become a stressful burden after a job loss, so it’s not a good time to buy a home if you think you’ll get laid off.

Wait until your employment is stable before thinking about buying a house.

Are you financially prepared?

Here are the three main ingredients to evaluate:

Savings – You’ll need money for a down payment and mortgage closing costs as well as for moving and other expenses after you buy the home.

Credit – Lenders generally offer the best mortgage rates and terms to borrowers with credit scores of 740 and above, although you can qualify for a mortgage with a score in the 600s. The options are much slimmer and loan costs can be higher for borrowers with a score in the 500s.

Debt – Lenders look at your debt-to-income ratio, or DTI, to help determine whether you qualify for a mortgage. They like to see a DTI under 36%, although it’s possible to qualify with a higher ratio. The lower your DTI, the better your chances of qualifying for a mortgage and getting offered the lowest available rate.

Planning to buy a house? Let’s chat!