Why pay-off someone else’s mortgage when you can be paying off your own? Making the decision to stop renting and start looking for your own home is a major decision for would-be home owners.
When should you consider purchasing? Perhaps when any of the following ring true for you:
You Need More Space- Your Family Is Growing
That cute little apartment might be getting just a little too small. Maybe your family is growing? Sometimes it is not just about wanting an extra bedroom. Sometimes it is about joining the ranks of others who want to invest & own. Though none of us can predict the direction of future home values, in order to gain equity in a home you need time. Yes, it takes plenty of mortgage payments to gain equity, but when you pay off your mortgage you’ll have a piece of property that is yours.
Is Your Rent The Same Or Higher Than A Mortgage Payment?
If you can afford a mortgage payment that is similar to your current rent, that should be a huge motivating factor to own. Saving for a downpayment (speak with lender or Realtor) could put you in position to purchase in the near future. Why pay money (rent) for something when you could own for the same price? Remember, there are additional costs that come with ownership, such as property taxes, property upkeep and maintenance. But if it pencils out for you, perhaps buying a home/condo is in your near future. Ask your advisor/broker about downpayment & how to prevent having to pay monthly private mortgage insurance. Ask about specific areas & prices,…ask, ask, ask)
Are You A Gypsy At Heart?
If you don’t want to stay put and still want to move from one city to another, you might want to wait before you purchase a home. But, if you are in an area and plan to stay for about 5 years or more, then investing in a home might be the best move for you.
Are You Prepared And Ready?
Being fully prepared to buy means being financially ‘set-up’ to qualify for a good mortgage. That means you need a secure job, strong credit rating (do you know yours?) and a total debt-to-income ratio of under 36 percent, AND enough money in your savings to cover your downpayment. We encourage homebuyers to have at least 3-6 months extra mortgage payment savings in the bank as well.
For first time buyers it takes time to prepare financially to purchase a home. Looking closely at your financial life, your saving & spending habits as well as your current lifestyle choices all contribute to your future ownership plans.
AbbottRealGroup.com – Windermere Real Estate
Greg Abbott | Managing Broker | 425.466.8786 | firstname.lastname@example.org
Lonnie Abbott Cartmell | Broker | 425.890.3310 | email@example.com
Tour a sample of a homes listed & sold by AbbottRealGroup-Windermere.
*Photography via Pinterest- Small homeby Galina Lavrishcheva