Whether the question of “should you buy a house” has been nagging you for years or occurring to you for the first time, it is a big, exciting thing you should consider. If you find yourself nodding yes along to the statements below, that time to buy a home could be now. Take a quick read to see if your answer to this question is “yes” right now or if you are getting pretty close.
You want to own a house.
Being a homeowner is a lifestyle change that comes with much more responsibility. Taking care of your home and extra costs are part of the deal. But the perks of being the primary decision-maker might make it all worthwhile:
Control over your living area.
When you own your own house, this space becomes yours entirely. You could paint the walls orange or knock the walls down if you really want to.
Ability to make a neighborhood your house.
Owning a home allows you to plant some roots and make connections. Because you control how long you will stay there, you could settle into a neighborhood and not worry about your landlord selling or charging more rent than you could afford.
Paying your mortgage may feel similar to paying rent, but it is not. Each month, a little more of that house becomes your financial asset. This is a term called building equity in your house. When that equity is built up enough, it will boost your wealth and creditworthiness.
You could afford to buy a home.
There are more than a few things you should consider when deciding if you can really afford a house. Online mortgage calculators are a good beginning, but there are other costs that factor in as well. For instance, you will need money for your down payment and closing costs. Many people put anywhere from five to twenty percent down. At closing time, you could expect to spend about two to five percent of the home sale price.
You should also consider monthly payments and ongoing costs. In addition to the principal and interest for your mortgage loan, you will have homeowner’s insurance, mortgage insurance, property taxes and sometimes homeowners association fees. Repairs and maintenance is going to vary widely, but you could expect to spend around one percent of the home sale price every year and more if it is a fixer-upper.
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You could qualify for a good mortgage rate.
Your credit score could determine both if you qualify for a mortgage and how much you will pay for it. A great credit score of seven hundred ninety will likely earn a low mortgage rate. You may get a mortgage with a six hundred score, but your interest will most likely be high, which can cost you tens of thousands of dollars more over the years.
Do you have a question about becoming a first time homeowner? Call 949-392-6400 to get in touch with the Reed Team today!