As I am sitting here writing this post I cannot believe it is October 28 already and that Christmas Music can be heard on Channel 70 on the Sirius XM Radio System. This is one of the most
Is Owning A Home The Right Choice For You
Is Owning a Home the Right Choice for You?
The last thing I want to do is sell you a home when you should really be renting. Yes, I said it, you might be better off renting. Let's figure out what is best for you. Answer the following questions and read on to discover the right choice for you.
1) Do you plan to stay in the area for at least 5 years?
2) Do you have a stable income? By this I mean, do you know how much money you have coming in every month?
3) Have you been employed with the same employer for at least one year?
4) Do you have good credit? Are you free from having a home foreclosure, a car repossession, bankruptcy, or defaulted student loans in the last 3 years?
5) Do you have any money in savings?
If you answered "YES" more than you answered "NO" you might be ready to buy a home. If you are really serious about wanting to buy a home but you've answered NO more than YES, don't worry. It may take some time, but I can help you get into a home. Let's look at the questions in more detail.
Do you plan to stay in the area for at least 5 years? If you answered NO to this question then you might want to continue renting. Buying a house is a commitment. If you have to leave for a new job in a different city, or are contemplating a new area, you don't want to be tied to a mortgage and a home that may take a while to sell. Continue to rent until you are sure you will be in one area for at least 5 years.
Do you have a stable income? If you are not sure what your hours will be every month, and your income fluctuates, you don't want to commit to a 15-30 year mortgage that requires a monthly payment. When you rent, you can downsize or upsize when needed, but when you own you cannot. If you are getting a mortgage, your lender will want to see that you have a stable, provable income. This means regular paychecks, or regular deposits to your bank account. If you generate an income that is not provable, a lender will not be able to verify you can afford a home. If you want to purchase a home, you will need to establish a stable income. All that being said, if you have enough money in savings to buy your home without a lender, you won't need a stable income. If you are paying cash, no one will ask you to verify income. However, you will want to make sure that your home expenses can be paid monthly. Taxes, HOA fees, utilities, insurance, etc. So even if you are paying cash, you will still need enough of an income to cover monthly expenses.
Have you been employed with the same employer for at least one year? Like the last question, a lender will want to see that you have stable employment. If you move from job to job your likelihood of getting a loan is slim. Of course, like the last question, if you have cash, a stable employer is not necessary to buy a home. Cash is King!
Do you have good credit? Again, for a lender, they want to take the lowest risk possible when giving you money to buy your home. The hardest hits on your credit are a home foreclosure, a car repossession, bankruptcy, or defaulted student loans. If you don't have any of these things in the last three years, and you don't know what your credit is, I can put you in touch with a lender who can pull it for you. You might be pleasantly surprised!
Do you have any money in savings? The very least amount of money you will need to purchase a home is $1,000. This is your good faith money when you go into contract on a home. There are programs that can help with down payments and closing costs if you qualify, but you will need to have a good faith deposit ready within 5 days of going under contract. Additionally, if you don't qualify for any programs that offer assistance in down payment or closing costs, you could be looking at several more thousand dollars out of pocket. Don't let this discourage you though. Save your money, but before you think you can't afford a home, you want to speak with our lenders.
So, lets wrap things up. If you aren't sure you want to be in the area for the next 5 years, continue renting. If you are going to be in the area for the next 5 years, lets work towards getting you lined up to buy a home. I'm committed to helping you through the process. It might not be today, it might not be tomorrow, but with some time and Effort, we can get you a home. Touch base with me, and lets figure out a personal plan for your home purchase.
Hello! My name is Tami Almquist. I've lived in the Pocono Mountains since 1984, after moving with my family from New Jersey to Paradise Valley while still in grammar school. I obtained my Bachelors of....
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