Ready to buy your first home? Join the millions of others out there who are navigating the waters of real estate for the first time.

It’s exciting, yet it’s completely intimidating at the same time, and for good reason. Your home is most likely the most expensive purchase you will ever make, so it’s not something you want to jump into without making sure you’re emotionally and financially ready.

Are you truly prepared for homeownership? Here are a few signs that’ll tell you that you’re primed to become a homeowner.

1. You’ve Got Your Overall Debt Load Under Control

It’s important to be realistic about your state of affairs when it comes to your money. If you have mounting debt from credit cards, auto loans, student loans, and other personal debt, you should probably straighten these out before you add more debt to the pile. Including another payment will just send you spiraling deeper into debt.

On the other hand, if your debt is under control, you’re probably able to comfortably handle monthly mortgage payments. You can easily find this out by calculating your debt-to-income ratio, which represents the percentage of your monthly income that is dedicated to paying off your debts. If a huge chunk of your income is dedicated to paying debt, you might find it difficult to meet additional monthly mortgage payments. Not only that, lenders might not approve you for a mortgage either. 

Generally speaking, a debt-to-income ratio of 36% or less is usually considered doable. Anything over this percentage means you’ll probably be biting off more than you can chew. The lower the number, the more likely you’ll be comfortable making your monthly mortgage payments in full and on time each month.

2. Your Credit is Decent

Not only does your debt-to-income ratio affect your ability to secure a mortgage, so does your credit score. Do you even know what yours is? If not, it’s time to find out. Luckily, you can quickly discover what your credit score is by requesting a report from any one of the three major credit bureaus: Equifax, Experian and TransUnion. It’s free to get this report once a year, so there’s no cost to you.

Lenders will look at your credit score to help determine how likely you’ll be able to meet your payments, versus default on them. The higher your score, the better. If your credit score is at least 620, you stand a much better chance at getting approved for a conventional mortgage. You may be able to secure an FHA-backed home loan with a score of at least 580. However, your ability to be approved for a home loan will depend on other factors well, including the following.

3. You’ve Saved Up For a Sizeable Down Payment

Not only will a decent-sized down payment help your lender look favorably on you, it will also impress the seller. A bigger down payment means you will owe less on the principal amount of your mortgage. It will also help increase the odds of getting approved for a home loan, and score a better rate.

Depending on the type of mortgage you are applying for, you might be able to get approved for a mortgage with a down payment of 5% of the purchase price of the home. However, if there are some questionable factors in your financial history, such as dings on your credit report, you could be asked to come up with more.

There are actually some home loan programs that allow as little as 3.5% or even zero percent down payment, but specific guidelines will need to be met in order to qualify. Just keep in mind that anything less than 20% on a conventional mortgage will mean you’ll be paying extra for Private Mortgage Insurance (PMI), which basically protects the lender should you default on your loan. The more money you’re able to put towards your down payment, the less you’ll owe on your mortgage.

4. You’re Planning in Sticking Around

If your intentions are to settle down for a few years, then you’re probably emotionally ready to make the commitment. It’s important to keep in mind that the selling prices can be an expensive and lengthy one.

Selling your home in less than two years after buying it can potentially wipe out any real estate profits. You’ll also be slapped with tax implications from selling too quickly. The IRS allows as much as $500,000 in profits from the sale of a property to be exempted from capital gains on tax returns that are filed jointly, or $250,000 for single-person filings. But you’ll need to show proof that the home was your primary residence for at least two of the last five years in order to make sure that money is exempt.

If you’re not sure if you want to stick around for long, you may want to rent first. If, on the other hand, you have intentions of sticking around for the long haul, that’s a good sign that you’re ready for homeownership.

5. You Want to Start Building Equity

Think of your home as investment. In actuality, it is. You’re not only buying a home to live in, you’re also building wealth over time. Every payment you make towards paying down your principal every month and appreciation in value over time both contribute to growing your home equity. In fact, one of the biggest benefits of homeownership is the equity that you can build as time goes on.

Having a lot of built-up equity in your home can give you a lot of options. It’s somewhat like a forced savings account that just gets bigger over time. You can eventually use the equity to fund some of life’s major expenses, such as a college education, major home renovations, or even a once-in-a-lifetime holiday. Borrowing against the equity in your home affords you with a financial safety net. If you’ve got your eye on building equity, then homeownership is likely for you.

6. You Have a Reserve Fund Stashed Away

When it comes to owning a home, it’s not just your mortgage payments that you need to worry about. Along with homeownership comes all sorts of other expenses, many of which can pop up unexpectedly. It’s important to ensure that you’ve got a reserve fund on the side, preferably at least 6 months’ worth to cover the cost of your mortgage, utilities, insurance payments, credit cards, and other debt obligations. If you’ve got this money built up, you’re in a much better position to buy a home.

The Bottom Line

It’s much better to take the time to determine if you’re ready to buy a house before you seal the deal. Even though it might be frustrating to hold off on the big purchase as you answer these questions, you’ll be in a much better position to buy knowing that you’re fully ready to take the plunge.

LINCOLN PARK

Kirby Kerr, the owner of Rotofugi™ Designer Toys, Art & Pop Culture is making a plea to the community through DNAinfo.com to keep his business alive. This designer art/toy store has grown from its small shop in the Ukrainian Village 12 years ago to the 2780 N. Lincoln Ave. location, attracting adults and children alike to its unique wares. Mr. Kerr and his wife are looking to expand the shop to rent out space for private events and birthday parties since declining purchases of collectibles is a usual result during times of economic hardships. “We’re not looking for a handout,” says Kerr, but instead wishes to be “…very forthright and transparent with our customer base.” Spread the word with us to stop in to Rotofugi or shop online to help keep another good business from being shuttered.

SOUTH LOOP

While one business is struggling, another is thriving. Nepal House, the fine dining Nepalese cuisine restaurant that offers a lunch buffet, and catering and dining on Tuesdays through Sundays from 11:00a.m. to 9:30p.m. at 1301 S. Michigan Ave. is expanding to the culturally diverse restaurant area of Devon Ave. The new location will be at 2601 W. Devon and replaces Curry Bowl.

GOLD COAST

July 30th is a day of remembrance for the excellence that is Cheesecake. Although the history is unclear, National Cheesecake Day is celebrated on July 30th and this year The Cheesecake Factory is inviting everyone to dine in with half-priced slices of cheesecake for two days only, Friday 7/29 and Saturday 7/30.  Make a date to stop into the John Hancock Center location at 875 N. Michigan Ave. while the offer lasts.

EVANSTON

LYFE Kitchen is hosting a “Sunday Fun-Day” at the 1603 Orrington Ave. location this weekend on Sunday 7/31 at 2:00p.m. This 30 minute event will feature music and storytelling by Linda Dennison who is co-founder with her husband of The Play Cafe Chicago which can be hired for entertaining at children’s events and birthday parties. LYFE Kitchen promotes healthy eating and claims to have options that even picky eaters could love.

NORWOOD PARK

The discussion and complaints regarding excessive jet noise due to O’Hare International Airport’s expansion continues. According to Nadig Newspapers, an ordinance is being filed by Indian Woods resident and former leader of legal and legislative affairs of the Fair Allocation In Runways Coalition (FAIR), Donald Walsh, to grant seats on the O’Hare Noise Compatibility Commission board to alderman from neighboring areas, including Norwood Park in the 41st Ward. As of now, the ONCC  is made up of people appointed by Mayor Rahm Emanuel plus the sole elected official, 45th Ward Alderman John Arena, who had directly asked Mayor Emanuel to appoint him to the board. Mr. Walsh filed the ordinance with the City Clerk’s Office in hopes that concerned aldermen will sponsor the ordinance to allow members of FAIR and other groups, such as the O’Hare Noise Group of Wood Dale, to better represent  the residents most affected by air traffic.

CATHY MALLERS & DEAN’S TEAM CHICAGO

Since ancient times people have used plants for healing of many physical as well as mental and emotional afflictions. They may have not have known exactly why these remedies worked but simply that they did. These remedies were handed down generation to generation. Natural remedies often have very few side effects or long term addiction. Now gardeners have always known that gardening makes you happy, now we know why.

It turns out that there is a natural antidepressant present in soil. Mycobacterium vaccae is now being studied. It is thought to have the same effect on the neurons in your brain as Prozac. The scientists believe it may stimulate serotonin levels. Lack of or low serotonin causes a litany of mental issues like obsessive compulsive disorder, anxiety, depression and bipolar problems. Whereas higher serotonin levels make you relaxed and happy. The microbes cause cytokine levels to rise which in turn raise serotonin. Tests on rats are producing some impressive results. These microbes are also being tested to improve symptoms in some autoimmune diseases like rheumatoid arthritis and Crohn’s.

Gardeners ingest the microbe through the air or it could be through skin contact. Perhaps a small open cut or scrape. The natural effects are thought to last 3 weeks. We gardeners will tell you there is a calming and uplifting effect from even just weeding. So let’s get out there and get some natural therapy playing in the dirt.

KATHLEEN WEAVER-ZECH & DEAN’S TEAM CHICAGO

A home that’s in pristine condition will do well at attracting the eyes of buyers and impressing them enough to put in an offer. If your home could use a little sprucing up, make sure you do what you have to do to bring it up to par before it even hits the market.

But you don’t necessarily have to break the bank to make sure your home is in tip-top shape. There are certain tasks that you can do that cost very little compared to the return they can bring. The following upgrades can easily be done on a tight budget to boost the value of your home and bring in large profits come sale time.

Update Your Hardware and Fixtures

Never underestimate the power in the details. Simply replacing a few light fixtures, kitchen cabinet handles, door knobs, faucets, and outlet covers can go a long way in breathing new life into your home. This is one of the most affordable and effective ways to enhance the look of your house, and make a big selling impact to buyers.

Paint

With a couple of hundred bucks worth of paint, you can completely change the look of your home’s interior and hike up its value. In fact, painting can bring as much as a 112% return on investment, making it worth your time and money. By freshening up the walls and repainting them in a neutral color, buyers can better see the potential of your home with a clean slate.

Change the Front Door

For less than $1,000, you can make a huge impact on the curb appeal of your home simply by changing the front door. If the one you presently have is looking a little tired, replacing it with a new one can make a massive difference to the look and feel of your home.

If you don’t want to sink money into a new door, consider refacing it instead. Sand it down, repaint it, add a new door handle, hang a decorative wreath, and add a ‘welcome’ mat to completely transform the esthetics of your door. 

Add Shrubs and Flowers to the Landscaping

Curb appeal speaks volumes. In addition to a new or refaced door, consider grooming your lawn. Sounds like a no-brainer, but your grass should be cut and the weeds should be pulled. While you’re at it, plant some shrubs and flowers, and trim and dead branches or leaves off the trees. What buyers look at when they first approach your home is critical. Changes like these can instantly change their viewpoint of your home and boost its value.

Replace the Kitchen Counters

In the world of real estate, the kitchen is typically considered the most important room in a house. A completely new kitchen would obviously add a ton of value to a home, but it’s often an extremely expensive endeavor. You don’t necessarily have to go all out to make an impact on buyers and boost your home’s value. If the counters are old and dated, you can quickly and easily switch them up for something a little more modern, like granite.

Years ago, granite was typically only reserved for wealthy homeowners, but these days, the cost of this gorgeous material has come down quite a bit. Depending on the size of the surface area, the average granite countertop costs around $50 to $100 per square foot. For 8 feet of counter space, you can easily change your counters for less than $1,000.

Reface the Kitchen Cabinets

Considering how important the kitchen is to the value of a home, anything you can do to spruce it up would be extremely helpful. Refacing the cabinet doors is an excellent way to improve the look of this space. With a little elbow grease, you can sand down and repaint your cabinets in a new color that will make it look as if you’ve completely gutted the place.

Replace the Toilet

Aside from the kitchen, the bathroom is another room in the home that plays a key role in its overall value. Replacing an outdated, cracked, ugly toilet can have a big effect on your bathroom. Get rid of that old thing and get yourself a stylish, environmentally-friendly one for a couple hundred bucks.

Reface the Bathtub

An old, dingy bathtub is enough to turn anyone’s stomach. If that sounds eerily like the one you have, it’s time to reglaze it. Luckily, this doesn’t have to cost you a fortune. For a few hundred dollars, you can totally reface your tub and bring it back to its original luster, or better.

Add New Window Coverings

If your windows are still covered with tacky aluminum blinds, they’ve got to go. Nothing makes a room look more modern than brand new window treatments. If your windows are standard-sized, you’ll have an easy time finding blinds that fit like a glove. You can even get yourself pairs of curtain panels from stores like Target for anywhere between $15 to $40 each.

Pinpoint all the components of your home that could use a facelift, and apply any one of the above tips to make the necessary changes to increase your home’s value and impress buyers. With a few hundred dollars and a little elbow grease, you can make a big impact on your home that will translate into more money at the negotiating table.

Your home may have reflected your style a few years back – but today, not so much. Now you suddenly realize that your puffy sofa looks crammed in your living space, or that flower-ridden wallpaper looks a tad on the tacky side.

The thing is, you’ve got no clue how to change it for the better, so you decide that a professional interior designer is the answer. But considering how many pros there are out there – and how different they all are – how do you go about choosing the right one for your home?

1. Understand Your Personal Style

Ideally, the interior designer you choose should be able to closely match your style. But do you even know what your specific style is?

Doing some prep work before you even start looking for an interior designer can not only save you time and hassle, it’ll save you money too. Look through some decorating and design magazines, and gather up some ideas of colors, furniture pieces, and accessories that you’re particularly attracted to in order to help you layout your style. Having these ideas ready to communicate with potential designers in the form of pictures will give them a clear sense of what you’re looking for, and what they need to do to bring that to life.

2. Determine the Scope of Your Budget

Unless you’re a millionaire and money is no object, you’ll need to decide how much cash you can comfortably set aside to pay for interior design services. And after you’ve got that dollar figure mapped out, you’ll also need to find out how the interior designers that you’re scoping out are paid. Some charge an hourly rate, while others charge a flat fee. Others may mix a bit of both, depending on the extent of the project.

And then there’s the services that they charge extra for, or include in their overall price. Find out if things like purchasing services or consultations are included in their flat rate, or if they charge extra. Check to see if they charge an upfront retainer fee as well, and factor that price into your overall budget.

Don’t be afraid to flat-out ask them to clarify how they plan on spending your hard-earned money. Designers who are honest and trustworthy will have no problem answering your questions openly, and will stick closely to your budget throughout the entire project.

3. Check Out Their Credentials

Years ago you would have had a heck of a time trying to find out what type of credentials and training interior designers had before hiring them. These days, it’s a lot easier, as many states are now requiring designers to pass an exam from the National Council on Interior Design Qualification before they can legally call themselves interior designers.

Ideally, you want a licensed and experienced interior designer in your corner who’s undergone extensive training. You also ant someone who’s actually accumulated a lot of hands-on experience in the field so you don’t end up as a guinea pig for their portfolio.

4. Interview Your Candidates

So you’ve checked out a bunch of interior designers and narrowed down your choices. Now it’s time to interview those select few that have made your short list. It’s during this interview that you should be asking the right questions so you can get a feel for them and decide if one of them stands out above the rest.

What’s the size of their typical job? How will they be provide a visual representation of what the end result will look like? How do they go about choosing subcontractors? Who’s responsible for insurance? Is your involvement welcome or considered an obstacle? Can they provide references? Questions like these will help you narrow down your choices even further, right down the perfect one.

5. Identify Their Availability

Finding an interior designer who matches your style and can work within your budget is great. But does their schedule jive with yours? Have a chat with a few different designers about their schedules and when they’ll have the most time available to put the most effort into your project. If the designer you ultimately choose is too busy and can only dedicate a few hours here and there, it’ll take forever to get anything done, and will show in the final result.

Many interior designers have assistants that help with projects and keep their time schedule on target. In this case, find out exactly how much you’ll be working directly with the interior designer versus the assistants.

6. Check Out Their Portfolios

A portfolio can really come in handy to get a real sense of the caliber of work that the interior designer you’re considering is capable of. Make sure you ask to see a portfolio, and decide if the work done is both attractive and inspiring to you. You’ll know pretty quickly after perusing the photos whether or not the designer would work with your home’s decor.

Picking the perfect interior designer isn’t rocket science. But it is still an important process and decision nonetheless. Keep these pointers in mind, and you’ll be well on your way to working with the right designer who’ll transform your home for the better.