Making the transition from renter to homeowner can be overwhelming. With so much information available to those looking to purchase, how do you know what is accurate? That’s why it is so important to work with a trusted mortgage planner to determine when the right time is for you to purchase and how much house you can afford.
Let’s explore some common situations and misconceptions that may seem like roadblocks to potential homeowners, but are indeed not things to be afraid of:
When you purchase a home, you take on a heavy load of debt – While many loan terms can spread over 20 or 30 years, making a couple of extra payments each year can shed years off the terms. Additionally, when you make payments on your mortgage, you gain equity, which creates an asset that can be used if needed.
You need to make a down payment of at least 20% – There are a large variety of home loan programs available that do not require homebuyers to put down 20%. In some states, homebuyers may even be able to put down as little as 0-3%, depending on the program requirements.
You have to have a perfect credit score to buy a house – While having a good credit score makes being approved for a mortgage much simpler, it is not necessarily required. Your credit score and payment history play a role in your mortgage approval; however, there are many loan programs that allow mortgage planners to work with buyers who have a less than perfect score.
You won’t have flexibility to relocate – Many experts advise homebuyers to plan to stay in their homes for a minimum of three years. However, in a healthy housing market, most owners can sell their homes relatively quickly if needed.
Do you think you may be ready to make the jump to homeownership this year? I would love to meet with you and discuss your finances to determine which loan programs may be right for you. Call me today to set up an appointment.