Are You Ready to Buy Your First Home?
People have many motivations for wanting to own a home, including providing family stability, having control over their living space and creating financial wealth. As a renter, it can feel like you’re throwing money away each month and only building net worth for your landlord.
Why not start building your own financial security with the purchase of your first home? According to the most recent Survey of Consumer Finances by the Federal Reserve, a homeowner’s net worth is 36 times greater than that of a renter ($194,500 vs. $5,400).
Determine if you are ready to become a homeowner:
Do you plan to stay at least 3 years in the home? In some markets it may take up to 6 years for a home to appreciate enough to offset the costs of selling and moving. According to Zillow, in 2016 the median home value increased 6.8% and gains are expected to be 3.5% this year.
Are you prepared from the responsibilities of home ownership? You can’t just call the landlord to fix the plumbing or repair your leaky roof. While knowing how to do some basic home maintenance is an advantage, having a cool head and a reliable handyman to call is essential.
Do you manage your budget? If you live on credit cards and don't know where your paycheck goes you’ll first need to get your financial house in order. Start by pulling your credit report, learning your credit score and clean up your finances before you go house hunting. Then they’ll be no shocking surprises when you pre-qualify for a home loan.
Are you able to save a portion of your paycheck? In addition to the down payment and closing costs, you should have a nest egg for home maintenance and repairs, homeowner’s insurance, property taxes, and be able to cover a few mortgage payments if you lose your job.
Decide for yourself! Every market is different. Before you renew your lease, use the Starkey Mortgage Rent vs Buy calculator to see if you would be better off buying a home.
Ready to take the next step to becoming a homeowner? Contact a Starkey Mortgage loan officer in your state to learn which home loan option best meets your financial needs.