The Accidental Banker Shares How to Know if You’re Ready to Own a Home

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March 1, 2021

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We’re bringing you a special blog series from The Accidental Banker. Orv Kimbrough offers a smart, caring perspective on simplifying home ownership, and we are so happy to share his story and lessons with you. This series is part of a paid partnership with Rising Bank, a division of Midwest BankCentre, and we do receive a commission if you take advantage of their services.

What My Background Taught Me About Home Ownership

I grew up poor and I was orphaned at eight years old. Because of this, my early career was guided by one purpose: to empower people to live their best possible lives.

For nearly 20 years, I worked in the nonprofit sector to help stabilize people’s lives and enable them to get on the path to social mobility. My move to banking came from a desire to have an even bigger impact by creating access to financial capital.

In my work, I found that home ownership is a huge step toward wealth and shared prosperity. Sadly, far too many people are either locked out or unable to overcome the barriers standing in the way of owning a home.

Overcoming the Barriers to Home Ownership

First things first: get to know your credit score.

Your credit score is a tool used by lenders to determine the likelihood that the loan can be repaid. It’s generally reported as a number between 300 to 850 and, in theory, the higher the number the more creditworthy the borrower.

Good news, though! No established credit history or a less-than-ideal credit score are not necessarily a dead end on the path to home ownership. Rising Bank has the tools to help.

I Know My Credit Score, Now What?

Once you know your credit score, there are a few things to consider.

You may be ready to purchase a home if:

  • You know your credit score, and it is above 620.
  • You pay your bills on time and are not overextended.
  • You have an emergency fund.
  • You have a regular source(s) of income.

You may not be ready to purchase a home if:

  • Your debts are more than 43 percent of your income.
  • You don’t have emergency savings.
  • You don’t have a credit history or know your credit score—and when you find out, it’s below 620.
  • Your income is unsteady.

Ready for the Next Step?

If you are ready to be a homeowner, Rising Bank’s friendly loan experts can help you get into your own home. Learn more here about Mortgages by Rising Bank or get pre-approved today!