Buy An Idaho Home When Ready
While it may be adequate to grab that new sweatshirt on a whim, the choice to purchase a home requires some thought, a bit of planning and making smart decisions. You'll want to Buy Idaho Home When Ready and it's important to know when that is.
Becoming a homeowner for the first time or a repeat buyer, buying a home is a financial and emotional decision. Putting together an experienced support team requires a REALTOR®, lender, home inspector and a range of other individuals.
What's your motive to buy a home?
Why you want to move is an emotional part of the decision process. If you're a first-time home buyer, you'll need a stable career and the will to commit to living in the same community for 5-7 years. You should want to plant roots in your new neighborhood and look forward to decorating as you wish without a landlord's permission.
Think about how you like to spend your time and what type of community will fit your lifestyle when buying a home. Such as, do your want a rural area without close neighbors? How about a three story condo? Maybe a building downtown? Or could it possibly be a home within a thought out community with plenty of recreational amenities and activities for you and your family.
Are your finances ready for homeownership?
Although your dream home may not be within your reach right away, you can take steps to become a homeowner the moment you earn your first paycheck.
In order to qualify for a home loan mortgage , you'll need decent credit, a good track record of paying your bills on time while still saving some money and keeping a good debt-to-income ratio. In addition, you'll want your gross monthly income compared to the minimum payments on all your recurring debts to be 43% or less. Some lenders may have stricter guidelines, so staying on the lower end of your debt-to-income ratio will always better your chances of obtaining a home loan approval.
Also, there are loan programs available with low down payments of 3.5% to 5% and a few other programs that may offer no down payment at all. However, you may still need some savings to pay for things like closing costs, moving expenses and an earnest money deposit on a home you put an offer on. It's also a smart idea to have some cash reserves on hand after you buy for things like repairs and emergency rainy day fund.
A necessary component of homeownership is the saving of money and retaining or improving your credit history.
Can you afford the dream home you want?
Home prices and rents can vary greatly from one location to another, but you can use online Rent vs. Buy calculators or contact your REALTOR® to estimate the difference between your current rent and buying your own home. In some markets, buying a home can cost the same or even less than your current rent payments.
Keep in mind, when you become a homeowner, you will also need to include things like homeowner's insurance, property taxes and possible (HOAs) HomeOwner Association dues required in your home payment costs. Ask us today for a home affordability calculation to help you estimate what you can pay for a home.
Additionally, you should also think about your plans for the future and how you will plan to spend your money. For one thing, what will you be comfortable paying as a monthly mortgage payment. Your lender will tell you how much you are qualified to borrow, but they won't know how much you normally spend on traveling, vacations or future plans for reducing your work hours when you have a family.
After you've thought through the emotional and financial elements of becoming a homeowner, your next steps should be to contact your REALTOR®. Then meet with a reputable lender who can discuss your options for financing your purchase. Contact Us Today for our superb Lender Partner recommendations! - Buy Idaho Home When Ready
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