Owning a home is often referred to as "The American Dream", and can be a great wealth-builder. But, before you jump into the responsibility of owning, consider all of your options.
How long do you plan on living there? The shorter you see yourself living in one spot, the more renting makes sense.
How stable is your job? If your job and pay are unstable, it might be more wise to rent for a while until you become more established.
How affordable/available are rentals vs owning? Depending on your market and preferred area, there may be a big difference. In some areas, it could actually be cheaper to own!
Need more help? Check this out this rent vs own calculator.
Although there are $0 down loans, and down payment assistance programs, you may have to put some money down if you don't qualify for those programs. The minimum down payment for a conventional loan is 3%, while FHA is 3.5% down.
With every mortgage transaction, there will be closing costs. Those costs can vary greatly between areas. Talk to a licensed loan officer in your area to go over the possible closing costs you'll need to pay.
A lot of online calculators can be misleading. Don't forget to budget for taxes, insurance, mortgage insurance (if applicable), and any HOA dues you may have.
To get more accurate numbers, consult with your loan officer and real estate agent.
The best source to see what's on the market. Connect with a real estate agent in your area and tell them what you're looking for. Remember: buyer's do not pay the commission of their buyer's agent. Take advantage of their expertise!
Copyright © 2021 Nate Fain - All Rights Reserved. This is a personal blog aimed to educate people on the home-buying and mortgage process. Everyone's situation is different. For more in-depth mortgage advice, please contact your preferred licensed mortgage loan officer. If you wish to speak to Nate, please click the "business info" link below that will re-direct you to his business website. Or visit www.mortgagesareboring.com
This information is not an advertisement to extend consumer credit as defined by Section 226.2 of Regulation Z. This is not an offer to enter into an agreement regarding interest rates