When is the right time to purchase a home? Buying a home is a huge financial decision and moment in your life. It’s the “American Dream” to own a home with a white picket fence but it can also become an American nightmare if you are not prepared. There are three major expenses that go in to buying and maintaining a home. Your on-going costs, closing cost and down payment. Your on-going costs are the the monthly mortgage payments along with the taxes, insurance and maintenance cost of the home. Your down payment is the amount needed in order to get approved for a mortgage loan. Some loans require at least 3% of the purchase price. Finally your closing costs, the fees you have to pony up in order to get into the house which is usually around
…show more content…
Then you have to pay your utility bills and factor in the monthly maintenance costs. That can easily add up to $1600+ per month to maintain this home. So how do you know if you 're ready to buy a home? Whatever your estimated mortgage loan payment is, add 30-50% to it per month. If your current budget can handle that payment month after month without leaving you in financial hardship then I think that’s a great start.
Here are some things I …show more content…
You “DO NOT” want to clear out all of your savings to purchase a home. That would be setting yourself up for failure.
2.) Make sure your building up your credit score and showing great credit worthiness. When you 're shopping for a mortgage, having good credit will make the process much easier and possibly save you thousands on interest.
3.) Visit the area during different times of the day. Research the city, here is a great website for city statistics city-data.com. Look up information like the crime rate, the population and demographic, the schooling and education systems if you plan on having children… etc.
4.) Evaluate your current financial situation. Your debt-to-income ratio (monthly debt payments/monthly income) can decide whether or not you can handle a mortgage payment. Most lenders will allow you 36%-40% max with a mortgage included.
5.) Don’t rush!!! According to “realtytrac.com” default notices, scheduled auctions and bank repossessions were reported on 1,083,572 U.S. properties in 2015. I’m sure at one point these people qualified for loans for their properties also but emergencies happen and life kicks in. I want people to be well prepared so they can handle these rough
Then you have to pay your utility bills and factor in the monthly maintenance costs. That can easily add up to $1600+ per month to maintain this home. So how do you know if you 're ready to buy a home? Whatever your estimated mortgage loan payment is, add 30-50% to it per month. If your current budget can handle that payment month after month without leaving you in financial hardship then I think that’s a great start.
Here are some things I …show more content…
You “DO NOT” want to clear out all of your savings to purchase a home. That would be setting yourself up for failure.
2.) Make sure your building up your credit score and showing great credit worthiness. When you 're shopping for a mortgage, having good credit will make the process much easier and possibly save you thousands on interest.
3.) Visit the area during different times of the day. Research the city, here is a great website for city statistics city-data.com. Look up information like the crime rate, the population and demographic, the schooling and education systems if you plan on having children… etc.
4.) Evaluate your current financial situation. Your debt-to-income ratio (monthly debt payments/monthly income) can decide whether or not you can handle a mortgage payment. Most lenders will allow you 36%-40% max with a mortgage included.
5.) Don’t rush!!! According to “realtytrac.com” default notices, scheduled auctions and bank repossessions were reported on 1,083,572 U.S. properties in 2015. I’m sure at one point these people qualified for loans for their properties also but emergencies happen and life kicks in. I want people to be well prepared so they can handle these rough