Move From Renting To Owning With These Tips

As you watch your monthly rent tick up, it might be time to consider shifting to becoming a homeowner. Buying a home has similarities to a long-term relationship. It's a big commitment, both financially and emotionally. Here are some things you will want to keep in mind as you prepare to go down this road!

Get A Credit Check-up

A good-to-great credit score will do more to help you qualify for a loan. You may also qualify for a lower interest rate, which can save thousands over the life of a mortgage. Start by requesting a free credit report at AnnualCreditReport.com. When reviewing your Equifax®, ExperianTM , and TransUnion® reports, be sure to look for errors. According to a 2021 survey, one-third of consumers will find them.

Put Your Savings Into High Gear

In addition to a down payment, a cash stash will help you cover down payment costs and cash reserves if your loan requires them. After move-in, you will be able to decorate and furnish your new home while keeping credit purchases under control.

Assess Your Current and Future Lifestyle

Even if you are not buying a home with a spouse or partner, this is important in post-COVID times, especially if you plan to work at home. Things to consider:

• Will you be unhappy outside of a big city, or are you more comfortable in a rural setting?

• Do you have children or are planning to begin a family, what sort of education and amenities do you plan to provide?

• Do you want to be an active member of neighborhood groups and committees, or do you prefer a solitary lifestyle?

Research Your Monthly Mortgage Budget

Experts recommend spending no more than 28% of your income on housing, although some mortgage programs allow for higher. Housing expenses include someone's loan's monthly principal and interest payments, plus deposits to an escrow account to pay their annual real estate taxes and homeowners insurance premium. You may also be required to pay private mortgage insurance (PMI) if you buy with less than 20% down. PMI can be eliminated as you pay down your principal.

Choosing The Right Mortgage Provider Is Key!

Your estimated closing costs and prepaid expenses would be around $8,000.

A reputable lender will do more than provide plenty of home financing options. Your representatives will be familiar with your chosen area. Licensed representatives will answer your questions in everyday language, walk you through pre-qualifying and pre-approval, and assist you with choosing an affordable mortgage.

Home Mortgage Alliance is glad to help! Contact Me today to get connected with the right lender. It would be my honor to share with you additional tips on how to get started!

*Article provided by Home Mortgage Alliance