Owning a home is considered by many to be the American Dream.
However, there are a few things you need to think about before
you start looking for that dream home.
Consider the advantages and the disadvantages of owning a home
over renting. Homeownership offers greater financial security,
tax benefits, and privacy, but it also means property maintenance
and less mobility.
If you decide you would like to own a home, you need to review
your financial situation and decide if you can afford it. You will
need money for a down payment which is typically from 3 to 20 percent
of the purchase price. You also need to allow more for monthly
household expenses. Mortgage payments are typically more than rent
payments. Utility bills which may have been included in your rent,
may be higher with a home. You are responsible for maintenance
of the house and the property. You will need to save for unexpected
repairs.
Review your credit. A mortgage lender will look for a good credit
history with regular timely payments made to your creditors. They
will also consider your current debt obligations to be sure you
can handle more debt.
Carefully reviewing your situation will allow you to determine
if you are ready for homeownership. Consider attending a First
Time Homebuyers workshop to get more information.
