Buying a home is a major achievement for a family or an individual, as is the responsibility that comes with it. According to the study Profile of Home Buyers and Sellers done by the National Association of REALTORS, buyers typically expect to stay in their recently-bought home a median of 15 years. That is a long time during which every homebuyer hopes they have made the best decision.
And the fact is that the journey to homeownership is filled with important decisions and procedural steps. For these, people need to be prepared so they can act smoothly when it’s the right moment to make their offer for a property.
At DCR Homes, we understand that buying a home is not just a financial transaction—it’s a deeply personal goal every buyer should feel confident and on the right track. Our role is to walk that path with you, offering not just expertise but genuine support every step of the way.
So, how do you know you’re truly ready to take that step? There’s no perfect formula, but there are clear signs that can help you gauge your readiness. Here are five key indicators that show you’re not only dreaming about a home, but you’re ready to make it happen.
1. You Have a Qualifying Credit Score
Your credit score is a reflection of how you’ve managed your financial responsibilities, so it’s not just a number. It’s, as a matter of fact, one of the first things lenders will consider when assessing your eligibility for a mortgage, as it shows them that you’re a responsible borrower.
Credit scores range from 300-850, and, in most cases, a credit score of 620 or higher qualifies you for a conventional loan. Of course, higher credit scores translate into more favorable rates. For FHA loans, the minimum may be lower, around 580, but the stronger your score, the more favorable your loan terms are likely to be, including lower interest rates and more flexible repayment options.
At DCR Homes, we work closely with future homeowners to help them understand how their credit profile impacts their buying power, because we believe transparency and education are part of the service you deserve. We highly recommend that you check your score and get a detailed report if you haven’t crossed this step yet. And remember, it reflects dynamic changes based on your financial behavior, so you should keep monitoring it. You can visit Annualcreditreport.com and do all this.
If your credit score is already in good shape, that’s a great sign you’re on the right track. So, if you’re planning on taking a loan for your home, remember to keep healthy financial habits, pay your bills on time, and avoid new debt. All these practices set you up for success with a strong credit profile.
2. You Have Set a Realistic Budget
Knowing how much you can afford is an essential piece of the puzzle. A realistic budget considers your current income, existing debt, monthly expenses, and future goals. Analyzing all of this is a key step in every smart financial plan, and ensures your future home will be a source of stability and not a reason for stressing out for not being able to afford it in the long run.
We’ve seen in the past: many buyers make the mistake of falling in love with homes that are outside their price range, so, to be completely clear about your budget, we recommend to use the 28/36 rule as a guideline: ideally, no more than 28% of your monthly gross income should go toward housing costs, and no more than 36% should be used for total debt payments (including your mortgage, credit cards, and car loans).
Another tip is that, even if having a budget in mind means cutting out some unnecessary expenses, you should not make drastic changes in your lifestyle, since a budget should reflect the life you’re building and want to maintain for long-term happiness, not just the house you’re buying. That’s what a realistic budget means.
3. You Have Saved Enough Money for a Down Payment
Saving for a down payment is often the biggest concern on the road to buying a house, but, frankly, it’s one of the strongest signs that you’re ready, since it indicates that your finances can comfortably support the purchase of a home.
While the traditional benchmark is 20% of the home’s price, there are many financing options today that require much less, sometimes as low as 3% for qualified buyers. Just remember that if you set less than 20% for a down payment, lenders will typically require you to pay a private mortgage insurance (PMI). This means your monthly mortgage payments will be higher, which affects how much you can afford for your home.
Also, you should mind that your savings cannot stop at the down payment. It’s important to factor in additional expenses like closing costs, home inspections, moving costs, and reserves for maintenance or emergency repairs. That means that if, for example, you want to buy a $400,000 home, you’ll need to save around $102,000 ($80,000 for your down payment; $12,000 to $20,000 for closing costs; and some extra money for the moving process or emergency repairs).
4. You Have Compared Your Different Financial Options to Select the Right Mortgage
Another sign you’re ready to buy a house is that you know your loan options and have chosen one according to your needs and conditions: remember, a mortgage is not one-size-fits-all. With so many different options on the market, like fixed-rate, adjustable-rate, FHA, VA, and conventional, it’s essential to compare and select the alternative that best aligns with your financial profile and future plans.
Do you plan to stay in your home for decades? A 30-year fixed-rate mortgage might offer the stability you need. Do you expect to relocate within a few years? An ARM (adjustable-rate mortgage) could give you lower initial payments. There are also programs designed specifically for first-time buyers, veterans, and low-to-moderate income families.
We pride ourselves on helping you understand the why behind the what. We want you to feel confident and not overwhelmed when choosing your mortgage, so we’ve also prepared a guide where we explain it to you further, along with the different types you can find in today’s market.
5. You Have Obtained Your Mortgage Preapproval
Preapproval is a definitive step, since it’s proof that you’re a serious, qualified buyer, which is of great interest to any seller. How do you obtain a preapproval? By providing your lender with documentation of your income, assets, debts, and credit history, you receive a written confirmation of how much you’re approved to borrow.
Just remember: a preapproval is not a mortgage final approval, as it doesn’t guarantee you a loan, but it’s certainly a step forward that streamlines your home search and sets clear price boundaries for your purchase. It also gives you a competitive edge in today’s fast-moving market, showing sellers that you’re ready to move forward without delays or uncertainty.
So, if you’re interested in a property, a preapproval will cast you as a suitable candidate. And once you’ve found a place you absolutely like, it will speed up negotiations and will give your lender a solid reason for approving your mortgage loan.
Extra Tips to Consider:
Completing the five steps above means you’re in a strong position to begin your home search. But there are a few more tips that can ensure a smoother and more confident, ready-to-buy position.
A Trusted and Experienced Real Estate Agent
The Florida real estate market moves quickly, and having a reliable, experienced real estate agent by your side makes all the difference. A good agent will provide you with strategic insight, negotiate on your behalf, and explain to you all the technical aspects to consider when closing the deal and signing the contract.
Look for an agent who knows the local communities, listens carefully to your needs, and is committed to advocating for your best interests.
Knowing What You Want
This might sound like an obvious sign, but we have seen it in the past: people may be good candidates, have their finances in order, already saved enough for a down payment…but they’re not clear about what they’re looking for, where to look, how much, etc. They have no idea, and this prolongs the process. So, after all, knowing what you want is what truly seals the deal.
Without a clear sense of your expectations, the search can become overwhelming and time-consuming. That’s why we encourage our clients to build a home wishlist, one that includes must-haves, nice-to-haves, and non-negotiables.
We encourage you to ask yourself:
- How many bedrooms and bathrooms do you need?
- Is a yard or outdoor space important?
- Do you want to be close to schools, work, or public transit?
- What kind of community do you envision living in?
Just as importantly, make sure your wishlist aligns with your budget. Being clear about your needs and flexible about your wants will help you focus your search and avoid distractions. At DCR Homes, we’re here to help you select the right home and clear all doubts during the process. We’re happy to assist you with our expertise and, most importantly, with a great sense of empathy to guide you along this journey. So, if you’re seeing the signs that you’re ready to buy your dream home, we’re ready too!
