5 Indicators That Show You're Ready for Home Ownership

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Buying a home is the biggest step mankind can make toward the American Dream, and you need to be sure you're ready or you can end up with a financial disaster. Luckily, your life and bank account give you clear signs to guide your way. If your financial planning indicates you are ready for home ownership, then this could be the perfect time to buy.
5 Indicators That Show You're Ready for Home Ownership

4You Have Money Ready to Spend

To avoid the distressing extra costs of private mortgage insurance, you should have at least 20 percent of your loan amount in cold, hard cash. This proves to the world that you are a responsible human being who planned ahead and saved up for this enormous investment, so the banks of the world can trust you with their money. If you didn't save up 20 percent, they don't trust you, and the insurance you pay monthly protects them if you go belly up. If you have 20 percent earmarked for a house, then congratulations—you may be ready to buy.

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