How to Know if You’re Ready To Purchase a Home

Purchasing a house is a commitment unlike any other. So, to prepare you for the house hunting, comparing rates, take this time and take a look at your current situation and how this could impact things going forward for you. 

Personal checklist:

• Are you considering any possible major life changes, potentially changing jobs, having a family, anything in the next few years that could impact your financial situation? 

• Are you able to commit to staying in a house for at least five years?

• Do you have a stable and consistent income?

• Are you sure that you can handle home repairs, or at least take the time to learn? 

• Are you willing to contact a specialist and pay whenever something breaks?

Benefits of Buying A Home

• By not having a landlord, it means you can make your house a home without anyone's approval. 

• Unlike having rent payments, the interest you pay can be tax-deductible.

• You can find a mortgage that is suited to fit your budget and income. Also, that will assist you in making sure your monthly payment doesn’t go up as the market changes. 

Benefits Of Renting A Home

• Your landlord is pretty much responsible for home repairs and upgrades if needed.

• If you are renting, you won’t need to buy homeowners insurance or pay property taxes. 

• Moving is much easier considering you don’t have to sell your home or find renters. 

How to Evaluate Your Financial Current Situation Before Purchasing A Home

Purchasing a home is arguably the largest purchase you’ll ever make. However, it is vital that you make sure your financial house is in order.

Here is a checklist to follow:

• Do you have a stable & consistent income/job?

• Are you able to put away dedicated savings each month?

• Do you have a strategy for managing debt, for instance, student loans and payments?

• Are you one to stay on top of credit debt? 

• Do you already have money saved up for emergencies or situations that call for it?

• Do you have money saved for a down payment and home closing costs?

How to Determine Your Down Payment

How much you potentially need for a down payment weighs on the type of loan and how much the house costs during that time. The more you can put away for a down payment, the lower your monthly payment can be. Also it helps determine how much you’ll save on interest. 

Most loans require a down payment of at least 5% of a home's price. FHA loans require as little as 3.5%. 

Alongside with your down payment, you'll have to pay closing costs, and or fees associated with delivering and locking up your loan. These can change or be different depending on the price of the house and the type of mortgage. In general however, estimate between 2% and 5% of the home's value.

Why Choose Tampa Bay Home Mortgage

Tampa Bay Home Mortgage is ready and willing to provide quality service to those in need. We treat each need in accordance with the person and their needs. Choose us today!