Purchasing a house is a very exciting time. Being able to be prepared will help you make an informed decision. So, take this opportunity to learn more about homebuying and the mortgage process.
ARE YOU READY TO BUY?
Ask yourself this question, “Am I Ready to Buy?” Buying a home offers many advantages, one of the most significant being that it allows you to build equity (ownership) when you pay your mortgage each and every month.
A common myth is that monthly mortgage payments are more expensive than rent payments. However, in most cases, mortgage payments can be MUCH less than rent.
BENEFITS OF HOMEOWNERSHIP
So, when considering homeownership for the first time, you will need to decide whether buying makes financial and practical sense for you right now or if renting is better.
You should however consider both the advantages and disadvantages to renting as well as buying. Let’s take a look at a few advantages and disadvantages of both.
HOW MUCH HOUSE CAN YOU AFFORD?
The first step toward finding the right home is to figure out your purchasing power and determine how much you can really afford to pay each month. This saves time by allowing you to focus on homes in your price range.
Keep in mind, during the planning stage you should consider both up-front costs and ongoing costs associated with purchasing a home. Try out our Home Purchase Qualifier to see how much home you can afford before searching for your dream home.
GETTING PRE-QUALIFIED IS IMPORTANT!
Getting pre-qualified is also a good idea. It will help to narrow down your options so you can focus only on home you can afford. Click here to get pre-qualified today.
UPFRONT COSTS INCLUDE
Down payment
Typically ranges from 3-30% of the cost of the house. The more you can put down, the greater equity you will have in your home and the lower your monthly payment will be. For down payments less than 20% you may also need to pay mortgage insurance.
Closing Costs
Typically range from 2-6% of the loan. However, this amount depends on your area.
On-going Costs
Your housing costs can include some of the following:
- Monthly mortgage payment
- Homeowners insurance
- Mortgage Insurance
- If applicable - Flood Insurance
- If applicable - Property taxes
- Utilities
- Maintenance
FIRST-TIME HOMEBUYER RESOURCES
Are you a first-time home buyer? Download our FREE First-time Homebuyer Guide to learn everything you need to know about the mortgage process.
You can also visit our First-Time Homebuyer Resource page for more information!
CONTACT US
Do you have questions about the Mortgage Process or which type of loan best fits your financial situation? Check out our library of loan programs or contact us directly and one of our expert loan officers will help.
