The idea of owning your own home instead of renting can be extremely appealing. If you are thinking about swapping out your lease for a mortgage loan, however, you have to make sure that you are truly ready. These are a few things that you'll want to ensure before signing on the dotted line.

1. You Have Good Credit

You might have heard about programs that are supposed to allow you to purchase a home with poor credit. However, it can be harder to get approved for these loans, and you might end up with worse terms, such as a higher down payment or a higher interest rate. You are going to be locked into your home mortgage for 15 or 30 years, so it's important to make sure that you're getting the most reasonable terms out of the deal. This means that it might be worthwhile to wait and work on your credit score if your credit is bad.

2. You're Stuck in One Place for a While

Buying a home isn't always a good investment. If you are going to be moving in the next few years, for example, you might not want to be stuck in a mortgage payment on a home that you might not be able to sell easily. Although there are some exceptions, it's typically best to avoid buying a home unless you know that you will be living in it for at least several years.

3. You Have Money in the Bank

You are going to need to have substantial money in the bank in order to buy a home. You'll need to be able to pay your down payment and your closing costs. Plus, your lender will probably be more likely to grant you a loan if it sees that you have money in savings in case something happens. For example, you might need money to pay for a new roof or for other home repairs later on down the road. You'll find that home ownership is a lot less stressful if you have money in savings to help you buy the home and then take care of it after you are the owner.

Not everyone who is interested in home ownership is ready for it. These are a few things that you need to look at before deciding to buy a home. Otherwise, you might want to rent for a few more years before you apply for a mortgage loan. Contact a local home mortgage loan company, such as CU Mortgage Service​, for further assistance.