How to Know You’re Ready to Buy a Home: 5 Signs It Might Be Time

If you’ve been browsing homes online, crunching numbers on a mortgage calculator, or dreaming of ditching your landlord — you’re not alone. One of the most common questions I get as a mortgage loan originator is:

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

Whether you’re thinking about buying your first home or upgrading from your current one, there are a few key signs that you may be financially and emotionally ready to make the move. In this post, I’ll break down five things to look for so you can confidently answer that question for yourself.

✅ 1. You Have a Stable Income and Employment History

One of the first things a mortgage lender looks at is your income stability. If you’ve had consistent employment for the past two years — especially in the same field — that’s a green light.

📌 Why it matters: Consistent income means you’re more likely to qualify for mortgage loan pre-approval and lock in favorable loan terms.

If you’re self-employed or a freelancer, don’t worry — I work with borrowers in all types of income situations and can guide you through the documentation process.

✅ 2. You’ve Saved for a Down Payment and Closing Costs

You don’t need 20% down to buy a home — in fact, many programs for first-time homebuyers offer 3% or even 0% down. But you will still need money saved for:

Closing costs (usually 2–5% of the home’s price)
Earnest money deposit
Moving costs or home furnishings
An emergency fund after you move in

Looking to buy a home in Colorado, Florida, Minnesota, Texas, North Carolina, Illinois, Tennessee, or Washington? I’m licensed in all of these states and can walk you through low-down-payment and first-time buyer loan programs available in your area.

✅ 3. Your Credit Score Is in a Good Place

Credit scores impact your mortgage interest rate and loan eligibility. Most loan programs require a minimum credit score of 620, but a higher score opens up better options.

Even if your score isn’t perfect, there are great loan programs and credit-building strategies available. I can help you review your credit and map out a custom plan to improve it if needed.

💡 Pro tip: Start this step early — credit improvement can take time, and it may be the key to saving thousands over the life of your loan.

✅ 4. You Know What You Can Comfortably Afford

Being “ready to buy” isn’t about getting approved for the biggest mortgage — it’s about knowing your realistic monthly budget.

Ask yourself:

What’s a comfortable monthly payment (including property taxes and homeowner’s insurance)?
Are you factoring in utilities, HOA fees, and maintenance?
Can you still save for other goals (retirement, travel, etc.)?

🎯 I always recommend starting with a mortgage pre-approval, so you can shop for homes confidently with a clear understanding of your purchasing power. I’m happy to run those numbers for you — no strings attached.

✅ 5. You’re Ready to Put Down Roots for 3+ Years

Buying a home is a long-term move — both financially and emotionally. If you plan to stay in the area for at least 3 to 5 years, it can make more sense to buy than rent.

This is especially true in markets like Denver, Charlotte, Austin, Seattle, Chicago, and Nashville, where rent prices continue to rise and home values historically trend upward.

💬 So… Are You Ready to Buy a Home?

If you found yourself nodding “yes” to a few of these signs, you’re probably closer than you think! And even if you’re not quite there yet, that’s okay — my job is to help you get there.

As a licensed mortgage loan originator, I’ve helped hundreds of clients prepare for homeownership, find the right loan program, and navigate the homebuying process with confidence.