If you are considering buying a home for the first time, there are a few factors to take under consideration when deciding whether or not you are ready to buy a home.
- Renters are subject to rate changes every year. As a homeowner with a fixed rate mortgage, you will pay the same monthly rate for the whole life of the loan. You also don’t have to depend on a landlord or management company to address repairs or problems with the property.
- Owning a home can provide families and communities with more stability. Some studies suggest a connection between home ownership and higher graduation rates as well as lower crime rates.
- Employment. Are you steadily employed? If you need a loan, will your employment history qualify you? Do you expect any changes in employment within the next couple years?
- Credit. Is your credit good? Will you be able to afford the monthly payment with your new home?
- Savings. Do you have enough savings for a down payment? Most loan types require a 20% down payment on the property. Do you have reserve emergency fund set aside? It’s a smart idea to have at least 6 months worth of reserve in the bank, enough to be able to cover all of your monthly expenses for each month.
Once you decide you’re ready, now is a perfect time to buy a home!
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