Owning a home is the American dream. It’s both an achievement and a life investment. However, you’ll need to work hard to finally get your own place where you can build the life you’ve always wanted. While owning a home frees you from rents that don’t generate a return on your investment, you’ll have to shoulder bigger financial responsibilities that involve maintenance, taxes, mortgage, and property insurance, among others.
Given these, the decision to buy your own Kansas City real estate shouldn’t be done on a whim. These questions should guide you in determining whether you’re ready for such a move.
Do you have a positive cash flow?
The state of your cash flow is crucial in your ability to pay for a house. You can say you have positive cash flow when you’re earning more than you’re spending on daily expenses and debt payments. According to statistics, the debt-to-income ratio should not exceed 43%. Lenders take this into consideration when deciding about your financial ability. Read more from this article: http://bit.ly/2tOFmKE