The American dream has always been to own your own home. It's also the largest investment most of us will ever make. Here are a few things you'll need when making the transition from tenant to owner.
What you will need:
1. Enough money to make monthly mortgage payments.
If a mortgage payment will bust your budget, you can't get rid of your landlord yet. Use our mortgage calculator to estimate your monthly payment.
2. Enough income to pay property taxes and homeowner's insurance.
The mortgage isn't the only cost you'll have each month. You also have to pay taxes and insurance. If you can't make those payments, you aren't ready to own a home just yet.
3. The ability to maintain the property.
You must keep a home in good repair or it will lose its value and you'll lose money. You can do the work yourself or pay someone to do it. Either way, you can't ignore the peeling paint and the window that won't close like you did when you were a tenant.
4. A decent credit record.
If you have lots of late payments, have declared bankruptcy or left old debts unpaid, it's harder to get a mortgage. And if you do get one, your bad credit record will make you pay a much higher interest rate. Usually, you need a minimum of a 620 credit score to obtain a mortgage. Here at the Premier Group we would be happy to recommend a loan officer who will help you every step of the way in navigating your credit and getting you the right loan for your budget.
What you won't need:
1. A big down payment.
It's best to make a large down payment so you can skip paying private mortgage insurance and lower your monthly payments, but you can buy a house for almost nothing down. It is really up to you. Ask us about qualifying for a FHA or VA loan!
2. Personal Experience (That's why we're here!) It will always be in your best interest to use a realtor when buying a home. Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without professional assistance. And of course, the Premier Group is dedicated to answering any of your questions, and helping make your experience with the process of buying your new home as simple and satisfying as possible.