Are You Ready to Buy a Home?
These 8 Signs Say Yes
Buying a home is one of the most significant decisions you’ll make. Whether you're just starting to think about owning a home or already exploring your options, understanding what it takes to feel equipped is the first step. Here's how to know if the time is right and what to consider as you move forward.
1. You Have a Consistent Income
Lenders typically like to see steady income in the same job or field. This shows financial stability and helps strengthen your mortgage application. A predictable paycheck also gives you confidence in your ability to make regular payments on a home loan.
2. You're Managing Debt in a Healthy Way
You don’t need to be debt-free to buy a home, but it is key to show that you’re managing it well. Lenders will look closely at your debt-to-income ratio (DTI), which shows how much of your monthly income goes toward debt payments. Many lenders prefer a DTI under 36 percent, with no more than 28 percent of your income going toward housing expenses.
3. You Have a Solid Credit Score
Your credit score affects the interest rate and loan options you may qualify for. In 2024, most conventional loans require a minimum credit score of around 620 to 640, depending on the lender and loan type [1]. If your score falls within that range or higher, you're in a strong position to apply. If it's lower, loan programs and steps you can take to improve your score are still available. Our Affiliate Partner, MTH Mortgage can help you with a credit repair program.
4. You've Been Saving for a Down Payment and Closing Costs
Saving for a down payment and closing costs is an essential part of buying. First-time buyers in 2024 put down a median of 9 percent, while repeat buyers average closer to 23 percent [2]. You’ll also want to plan for closing costs ranging from 2 to 5 percent of the loan amount. You can use our Mortgage Calculator to calculate your costs.
5. You’re Tired of Rising Rent Prices
As of late 2024, around 35 percent of employed people in the U.S. worked from home on the days they worked [4]. Whether you need space for a home office or your family is simply outgrowing your current layout, having extra room matters. Look for homes with flex spaces, additional bedrooms, or thoughtful layouts that give everyone the space they need. Meritage floorplans often include these features to help support your lifestyle now and as it evolves.
6. You’ve Outgrown Your Current Living Situation
As of late 2024, around 35 percent of employed people in the U.S. worked from home on the days they worked [4]. Whether you need space for a home office or your family is simply outgrowing your current layout, having extra room matters. Look for homes with flex spaces, additional bedrooms, or thoughtful layouts that give everyone the space they need. Meritage floorplans often include these features to help support your lifestyle now and as it evolves.
7. You Want to Put Down Roots and Build Equity
If you plan to stay in one place for several years, purchasing a home offers the chance to build roots and become part of a community. It also means investing in your future rather than someone else's. From choosing your neighborhood to personalizing your home, ownership gives you more control over your lifestyle.
8. You’re Ready to Take Ownership—Literally
Buying a home involves new responsibilities like budgeting for repairs, handling yardwork, and making long-term improvements. If you’re prepared to take on those tasks and are excited about creating your own place, it could be the right time to make the move.
1. You Have a Consistent Income
Lenders typically like to see steady income in the same job or field. This shows financial stability and helps strengthen your mortgage application. A predictable paycheck also gives you confidence in your ability to make regular payments on a home loan.
2. You're Managing Debt in a Healthy Way
You don’t need to be debt-free to buy a home, but it is key to show that you’re managing it well. Lenders will look closely at your debt-to-income ratio (DTI), which shows how much of your monthly income goes toward debt payments. Many lenders prefer a DTI under 36 percent, with no more than 28 percent of your income going toward housing expenses.
3. You Have a Solid Credit Score
Your credit score affects the interest rate and loan options you may qualify for. In 2024, most conventional loans require a minimum credit score of around 620 to 640, depending on the lender and loan type [1]. If your score falls within that range or higher, you're in a strong position to apply. If it's lower, loan programs and steps you can take to improve your score are still available. Our Affiliate Partner, MTH Mortgage can help you with a credit repair program.
4. You've Been Saving for a Down Payment and Closing Costs
Saving for a down payment and closing costs is an essential part of buying. First-time buyers in 2024 put down a median of 9 percent, while repeat buyers average closer to 23 percent [2]. You’ll also want to plan for closing costs ranging from 2 to 5 percent of the loan amount. You can use our Mortgage Calculator to calculate your costs.
5. You’re Tired of Rising Rent Prices
As of late 2024, around 35 percent of employed people in the U.S. worked from home on the days they worked [4]. Whether you need space for a home office or your family is simply outgrowing your current layout, having extra room matters. Look for homes with flex spaces, additional bedrooms, or thoughtful layouts that give everyone the space they need. Meritage floorplans often include these features to help support your lifestyle now and as it evolves.
6. You’ve Outgrown Your Current Living Situation
As of late 2024, around 35 percent of employed people in the U.S. worked from home on the days they worked [4]. Whether you need space for a home office or your family is simply outgrowing your current layout, having extra room matters. Look for homes with flex spaces, additional bedrooms, or thoughtful layouts that give everyone the space they need. Meritage floorplans often include these features to help support your lifestyle now and as it evolves.
7. You Want to Put Down Roots and Build Equity
If you plan to stay in one place for several years, purchasing a home offers the chance to build roots and become part of a community. It also means investing in your future rather than someone else's. From choosing your neighborhood to personalizing your home, ownership gives you more control over your lifestyle.
8. You’re Ready to Take Ownership—Literally
Buying a home involves new responsibilities like budgeting for repairs, handling yardwork, and making long-term improvements. If you’re prepared to take on those tasks and are excited about creating your own place, it could be the right time to make the move.
Final Thoughts Your Timeline, Your Homebuying Journey
Everyone’s timeline is different, and the right time to buy depends on your personal goals and financial situation. If these signs resonate with you, you may be closer to homeownership than you think. Meritage Homes is here to guide you along the way.
Think you might be ready to buy?
Explore your options with tools designed to help you move forward. Use the payment calculator on each home, browse move-in ready homes, or connect with a local real estate agent who can help guide your journey.
Sources
[1] NerdWallet – Conventional Loan Requirements: https://www.nerdwallet.com/article/mortgages/conventional-loan-requirements-guidelines
[2] National Association of Realtors (2024 Home Buyers and Sellers Report): https://www.nar.realtor/sites/default/files/2024-11/2024-profile-of-home-buyers-and-sellers-highlights-11-04-2024_2.pdf
[3] Consumer Price Index Data, U.S. Bureau of Labor Statistics: https://www.bls.gov/cpi/
[4] U.S. Bureau of Labor Statistics – The Economics Daily: https://www.bls.gov/opub/ted/2024/35-percent-of-employed-people-did-some-or-all-of-their-work-at-home-on-days-they-worked-in-2023.htm