fbpx
22121 Canyon Crest Dr Mission Viejo, CA 92692 +1 949-632-4347

Funding Your Future: Are You Ready To Be a Homeowner?

Funding Your Future: Are You Ready To Be a Homeowner?

If you have been renting for a while you might be wondering if you’re ready to be a homeowner. David Sant from Cyprus Credit Union stopped by, and said it’s a big step, so you’ll need to ask yourself a few questions to determine if you’re ready or not. If you’re wondering where to start, he said try asking yourself these questions:

Can I Save for a Down Payment?

While there are a few low or no down payment mortgage options, most traditional loans require at least a 20% down payment. If you have limited funds at the moment, your emergency savings, paying of major debt and retirement savings should be your priority.

If you find yourself in a position where you are able to save for a down payment, it might be beneficial to put the money in a separate account so you aren’t tempted to touch that money.

Can I Afford a Mortgage Payment?

Ideally, your mortgage payment shouldn’t be more than 30 percent of your monthly income. Spend a few months taking the amount of your potential house payment and put it into a savings account.

This money shouldn’t be used for anything else, treat it like a mortgage payment. Once it goes into the savings account it’s gone, just like it would be if you were paying your mortgage. If you’re struggling with the amount, it`s a good sign you’ll need to find a less expensive home. By the end of this exercise you should have decent down payment for the house you’re looking at.

How Much Debt Do I Have?

Take a look at what debts you have. The last thing you want to do is put yourself in more unnecessary debt by jumping into a mortgage. Come up with a plan to get rid of your debt as soon as possible so you can comfortable buy your home.

Am I Ready For the Commitment?

A home is a big commitment, much more so than an apartment or rental home. With rentals and apartments you can simply walk away when the lease ends. With a home it isn’t as easy. You have to do a lot more to move away.

If you see yourself moving away for a new job or expanding your family, you might want to wait until things are more settled before buying a home.

[…]  Click here to view original web page at fox13now.com

Related articles

9 things to know before renting your first house

9 things to know before renting your first house

We’ve talked before about the difference in value between renting and buying a home . But for some people, trying to think long-term about these decisions isn’t an option at the moment. Before even considering buying a house, many people still have to rent a home or apartment while they […]

Learn More
Top 5 Myths About Putting A Down Payment on Your New House

Top 5 Myths About Putting A Down Payment on Your New House

Plenty of myths circulate about the home buying process. With conflicting pieces of information flying all over the neighborhood, how are you supposed to know what to believe? It’s time to provide some clarity about one of the more misunderstood parts of buying a home: The down payment. If you’re […]

Learn More
Lots of mortgage options for Over 75s

Lots of mortgage options for Over 75s

Paying a mortgage into your 80s might not be what you’d planned on doing when you first bought your house. But for most people retirement doesn’t look anything like it did even 30 years ago. Rise of the “non-conformist” borrowers National Counties Building Society has just signed off a mortgage […]

Learn More

Leave a Reply

Your email address will not be published.