4 Why's You Are Ready to Buy a House
There is no denying that renting gives you more freedom-- you can relocate reasonably conveniently when you want, as well as you do not need to carry a home mortgage for years to live. Nonetheless, if you are like numerous renters, You have wanted to buy a house but did not know where to start.
How do you really know if you are ready to become a homeowner? Here are 11 why's you could be ready to purchase a house. If any of these why's resonate with you it is probably the right time to start looking for a house that you would be happy to live in.
Buying a house is very rewarding financially and emotionally. If you follow these 11 why's on how to purchase a house you sure will be successful in your journey from renting to becoming a homeowner.
Why # 1- Your landlord keeps raising your rent
Across the nation, rents are rising and there seems to be no end in sight. With your rent increasing each year it is hard for you to anticipate your annual housing costs. I bet there is also some resentment towards your landlord. And your income is not increasing at the same rate as your rent is. How many times have you asked why am I paying more in rent?
I too rented in the past, and the dreaded rent increase = Why am I paying someone else's mortgage! Let's also be real with one another. Not all renters are ready to buy a house. There are obstacles that stop renters dead in their tracks. Many times these obstacles are financial but there are also mental hurdles to overcome too.
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Why # 2- You are sick and tired of wasting your hard-earned money
Your rent payments are paying your landlord's mortgage. Therefore, you are paying down the mortgage balance and improving their equity position. One question you need to ask yourself-- How committed are you to your housing future? If your answer was a resounding "Yes" then you are ready to buy a house! If no, then you need to address your reasons and look for help to resolve them.
Just remember when buying a house you are not guaranteed a home run. Buying a house does involve risk, but over the life of your mortgage, you should gain substantial financial gains. Instead of throwing your hard earn money away at paying rent. By the way, do not forget there are tax advantages to owning your own house.
Why # 3- You now have a solid credit score
Credit scores are key in buying a house, but that number is just a portion of what lenders look at. The lower your score the higher the interest rate you will pay on your mortgage. Which in turn, will reduce the number of lenders that are willing to approve you for a mortgage. When you are ready met with a trusted lender and discuss what mortgage options are available. Get all the financial terms in writing so you can review all options before making a decision.
If you still need to improve your credit score ensure you get a free copy of your credit score. There are financial coaches that can help you improve your score. They will review your whole financial situation before offering a road map.
TIP: The financial coach will guide and support you in your credit journey, and you will do all the work to raise your credit score.
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Why # 4- You have financially prepared to buy a house
You have saved enough money for a substantial down payment. This means the lender will not require Private Mortgage Insurance (PMI). And you have also set aside enough money to cover your closing costs. Now, if you have not done both of these there are options to buy a house still. But be aware it will cost you more in a monthly payment. And over the life of the loan, you will pay more in interest costs. Don't just rush to buy your house with the first loan offer you are given. Weigh out your options and how your mortgage will impact your financial obligations.
To sum it all up
Buying a house is not as easy as they make it on TV. But going from a renter to a homeowner can be a straightforward transition with the right planning. The renters that are unprepared usually making house buying mistakes they regret later on. Please make sure you are not one of them!
