How Do You Know You're Ready to Buy a House?
March 17, 2024
How do you know you are ready to buy a house with an FHA mortgage? By this we don’t mean that you have saved up your down payment, gotten your credit in order, and have a plan to manage your finances with the new mortgage payment.
In this case, we’re discussing the decision to stop renting and start owning a home.
Rent or Own? Doing the Math
One of the first things to do when trying to answer the rent-versus-own question is to run the numbers. How much is your rent, renter’s insurance, monthly utility expenses, and parking, where applicable?
How does that amount compare to the costs of owning a home? For some, it’s not the dollar amount but the security of not having to deal with a new lease, increased rent, changes in landlords, etc. All these things are a form of currency.
Comparing Neighborhoods
Sometimes, rentals and single-family houses share the neighborhood. Sometimes they don’t. When there is more separation between these housing types, do you prefer one or the other?
For some, buying a home is about being in a more traditional community where you know your neighbors and form long-term relationships with the people and the area.
If you are looking for a community with less turnover in housing and more permanence, owning instead of renting is a smart choice.
Commutes, Services and Lifestyle
Choosing a place to live means deciding on how far to drive to work and school, the proximity of essential services like child care and grocery shopping, and how close you are to major traffic issues on busy highways.
For some, these issues aren’t as important, and many of these people may choose to continue renting.
But if you find you have specific needs for specific services and they are currently too far from your current home, buying a house closer to work or school makes sense. Especially if that is not a realistic option for renting.
Housing Security
Some renters lose their lease, get priced out of the building, or the landlord decides to take the rental property off the market. Sometimes, that means “going condo” and inviting the current renters to buy a condo unit. Move out or buy the condo unit? It’s a common dilemma.
But if condo living or continued renting isn’t the right move for you, buying a single-family home is a smart choice to consider.
An FHA mortgage with its low 3.5% minimum down payment requirement, is one possibility to get you off the renting treadmill. And for those who decide to “go condo” the FHA has a condo loan program that can help.
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RELATED VIDEOS:
Keep Your Eyes on Your Loan Balance
Learn About FHA Loan Prepayments
Taking Out a Home Loan Makes You a Borrower
In this case, we’re discussing the decision to stop renting and start owning a home.
Rent or Own? Doing the Math
One of the first things to do when trying to answer the rent-versus-own question is to run the numbers. How much is your rent, renter’s insurance, monthly utility expenses, and parking, where applicable?
How does that amount compare to the costs of owning a home? For some, it’s not the dollar amount but the security of not having to deal with a new lease, increased rent, changes in landlords, etc. All these things are a form of currency.
Comparing Neighborhoods
Sometimes, rentals and single-family houses share the neighborhood. Sometimes they don’t. When there is more separation between these housing types, do you prefer one or the other?
For some, buying a home is about being in a more traditional community where you know your neighbors and form long-term relationships with the people and the area.
If you are looking for a community with less turnover in housing and more permanence, owning instead of renting is a smart choice.
Commutes, Services and Lifestyle
Choosing a place to live means deciding on how far to drive to work and school, the proximity of essential services like child care and grocery shopping, and how close you are to major traffic issues on busy highways.
For some, these issues aren’t as important, and many of these people may choose to continue renting.
But if you find you have specific needs for specific services and they are currently too far from your current home, buying a house closer to work or school makes sense. Especially if that is not a realistic option for renting.
Housing Security
Some renters lose their lease, get priced out of the building, or the landlord decides to take the rental property off the market. Sometimes, that means “going condo” and inviting the current renters to buy a condo unit. Move out or buy the condo unit? It’s a common dilemma.
But if condo living or continued renting isn’t the right move for you, buying a single-family home is a smart choice to consider.
An FHA mortgage with its low 3.5% minimum down payment requirement, is one possibility to get you off the renting treadmill. And for those who decide to “go condo” the FHA has a condo loan program that can help.
------------------------------
RELATED VIDEOS:
Keep Your Eyes on Your Loan Balance
Learn About FHA Loan Prepayments
Taking Out a Home Loan Makes You a Borrower
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