Must- Haves for Buying a House in the 2025 Economy
Purchasing a home in 2025 requires careful preparation due to economic conditions, rising interest rates, and limited housing inventory. The following outlines the critical requirements for buying a modest house effectively. 1. Stable Income and Employment Lenders prioritize consistent income when assessing mortgage eligibility. A stable job with steady paychecks reassures lenders that you can manage monthly payments. Key Points: Lenders calculate your debt-to-income (DTI) ratio to evaluate financial stability. A DTI below 36% is preferred. Self-employed individuals should maintain detailed financial records and savings to demonstrate stability. What to Do: Gather proof of income (pay stubs, tax returns, or bank statements) to strengthen your loan application. Aim for a low debt-to-income ratio to improve approval odds. 2. Solid Credit Score A good credit score (typically 620 ...