First Time Home Buyer
Buying Your First Home
Purchasing your first home is an enormous decision. There are several variables that you should consider before your dive into the world of home ownership. Despite the enormous benefit of buying instead of renting, you need to be ready to handle the financial responsibilities.
Length of your stay
The length of time that you plan to reside in your new home has a huge impact on the type of financing you should obtain. If you plan to stay in your home for a short period of time (2-5 years) an interest-only or an adjustable rate mortgage may be a more suitable choice than a fixed rate loan. Keep in mind that this depends on the interest rates and market conditions.If you plan on residing in your home for a longer period of time, consider choosing a fixed rate loan to avoid surprise rate increases.
What is your financial situation
You should carefully consider your financial situation while deciding whether or not to purchase a home. One of the main factors to consider is your credit score. Your credit score is the main determinant in your eligibility for certain mortgage programs. The better your credit score, the more mortgage options you will have. Having a tarnished credit score doesn't necissarily mean that you shouldn't buy a home. iLoan Financial can help you find a mortgage regardless of your credit, and one of the best ways to improve your credit score is by making your monthly mortgage payments. Are you financially stable enough to make your monthly mortgage payments? If so, you should strongly consider purchasing a home.
Cost of ownership
There are many additional costs incurred when owning your own home such as taxes, property maintainance, condo fees, insurance, etc. Take these costs into account before purchasing a home. Many first time buyers feel that they can afford the mortgage payment but become bombarded with other costs that are associated with homeownership.
Call iLoan Financial for professional advice on buying your first home.
By StateFlorida | Pennsylvania
