Is it time for Home Ownership?

 

You"ve been hearing for months now that it's a good time to buy a home. Interest rates and prices are low - making it a favorable market for first-time buyers. There's a lot to think about when buying your first home, but it doesn't have to be overwhelming. Let me help you get started.

 

Rent -vs - Own. Many look at what they are paying in monthly rent, and if a mortgage payment is higher they assume it's too expensive. Not so. You need to look at the bigger picture; tax deduction (savings) at year's end has huge advantages. Deduction for mortgage interest and property tax can be as much as two monthly payments. That saves you money, plus you build equity (value), making money.

Think about your budget. Typical monthly payments should be no more than 28-30% of your gross income. Try it out first. Create a budget using your new house payment and try it out for a few months. Put the difference in the bank and see if this new monthly budget is comfortable for you.

 

Clear Up Your Credit. Clean up your credit the best you can. If you have many outstanding debts, check with your lender for advise on which debt to focus on first and how to get in good finical shape. The best way to keep your credit rating in good standing is to make payments on time and don't over extend yourself financially.

 Save for a down payment. The larger the down payment; the smaller the monthly payment and the largest choice of loan programs. 100% financing is becoming harder to find and may come with a higher interest rate.

 

Get pre-approved. Make an appointment with a lending institution discuss their current loan programs, evaluate your income -vs- debt ratio to find out exactly how much home you can afford. How much money will a lender loan you to purchase a home. Their are many loan programs to choose from and each lender has some of the same and some very different programs to close from. Take the time to interview three different lenders to see which one has the best fit for your goals.

 

Be realistic. Buying a home is a very big purchase. It's important for you to make the best purchase you can. Do not get lulled into a home that is too far out of your reach; be careful not to over extend your finances beyond your comfort level. Remember: this is your FIRST home not your LAST.

 

It's all YOURS. You want to paint, then PAINT; you want to hang a picture, then HANG IT; you want a different light fixture, then CHANGE IT. You no longer have to ask permission of a landlord to personalize your space, Its Yours, Do it !