Are you financially ready to buy?

So, you?ve finally decided that homeownership is right for you. Now you need to determine if you are financially ready to buy a house. In this previous post you can find a set formulas to calculate the size of your loan and evaluate your current financial situation.

Knowing your net worth is important because you will need this information when you discuss a mortgage with your lender.
Your net worth is the amount left over once you?ve subtracted your total liabilities from your total assets. It will also give you a snapshot of your current financial situation and show you how much you can afford to put as a down payment. (more…)