While many people feel like owning a home will never be within their reach, the truth is that doing so can oftentimes be the best decision you’ll ever make – and now could be an ideal time to find a place to call you own.
Being a homeowner as versus a renter means that you can decorate the way you want without having to ask permission – and you can even move a wall or add a room to create more space. But in order to get the ball rolling, you will need to come up with the initial amount of funds that will be required. You will also need to qualify with a lender for the amount of mortgage that you need.
Adding It All Up
Based on your income and expenses, you should ideally start the process by getting pre-approved for a mortgage. That way, you will have a good idea of how much home you can afford. This will help you in narrowing down your search, and it will give you a good idea of approximately how much your monthly payment will be on the loan’s principal and interest amount.
On top of the principal and interest, you will also need to factor in taxes and property insurance costs. And, if you have a down payment of less than 20% of the purchase price, you will also need to pay PMI, or private mortgage insurance.
You will also have utilities such as electric, natural gas, water, and sewer, as well as other entities such as cable and Internet providers. Oftentimes, some (or all) of these services are provided for by the landlord when you rent a property. However, when you become a home owner, you will be responsible for paying these costs. Maintenance and repairs will also be another expense item. The type, age, and condition of the property that you purchase will dictate how much you spend on these expenses.
Even with the “costs” involved in being a homeowner, though,” the rewards can far outweigh the expenses. If you’re ready to find the perfect home for you, contact us.