Are you living in a rented home? Do you realize you’re contributing towards your landlord’s equity and not yours? This is one of the main reasons, you should consider becoming a home owner. Desoto County new home buyers need to take a few things into consideration when taking this gargantuan step and we’re here to assist, every step of the way.
Are You Financially Prepared?
As a new home buyer, you will soon realize it’s the biggest investment you’ll ever make and it takes serious commitment. In order to be financially prepared, you will need to have money readily available for a down payment, usually between 5% – 10% of the total cost of the house you have your eye on. You may also have to pay between 3% and 6% for closing costs.
Desoto County new home buyers will need to pay private mortgage insurance which ranges between $50 and $200 per month if your down payment is less than 20%.
How Good Is Your Credit History?
Desoto County new home buyers, like any new home buyer, must have a good credit history. In order to qualify for a mortgage, you need a minimum score of 620, while a score of 700 or more gives you access to competitive mortgage rates. Mortgage companies look at your debt-to-income ratio and your monthly cash flow. The easiest way to work this out is to divide the total you pay out every month by your monthly gross earnings. Ideally, it should be below 36%. A debt-to-income ratio that is below 43% shows that you’re able to repay the money owing. If your ratio is 43% or more you’re going to need to flex that finance muscle to get it into shape. The best way to do this is to start paying off your unsecured debts like credit card and personal loans.
Buying a New Home Means Compromising. Are You Ready?
The reality is you’re going to need to be flexible and willing to compromise. If, for example, your dream home is an affluent area but your finances aren’t quite where they need to be then you should consider a compromise and look for a home that needs a little TLC. The key is to find real estate agents who specialize in the neighborhood where you’re wanting to buy.
Are You Ready on an Emotional Level?
Sometimes, adulting isn’t all it’s cracked up to be. This is especially true when it comes to things like paying taxes, buying groceries, fixing broken toilets and making sure the garden’s well-kept. Owning your own home means being financially flexible in order to cover these types of costs. It also means being able to solve the many problems that come with being a home owner.
What are The Benefits of Owning a Home?
In some cases, you will find it cheaper to pay a mortgage than rent a home. This is good because it helps you to build your own equity rather than lining your landlord’s pockets. When you talk to us we will help you choose a home that will help you kill two birds with one stone: living in your own house and building your equity.
Do You Need to Buy Your Own Home?
If you live alone it might be more cost effective to rent but if you have a family you will need extra rooms, a bigger yard and maybe more garage space. Renting a house this size is expensive, which is why buying a home makes more sense. A reputable real estate agent like Team Couch will help you find exactly what you’re looking for.
Buying a new home can be a daunting task, however, it is also an exciting start to the next chapter of your life. Asking yourself the right questions, and answering them honestly will help you take this huge step. Contact Team Couch today to learn more about buying a new home.