The “American Dream” of owning a home is becoming a reality for many people, but there are still things to consider before undertaking this large financial commitment.
- Don’t consider your home as part of your assets. It’s where you and your family live, and it’s not something you can trade on.
- It’s not liquid, meaning even in a good market, selling may take longer than you expect. If your future includes a job move or family expansion and the need for more space, consider NOT buying until your situation is more stable.
- Review your mortgage qualifications and credit history before you start looking so you know exactly what conditions, rates, and challenges you may be facing.
- Don’t forget to include insurance costs in your housing budget, especially if private mortgage insurance (PMI) is required by the lender, usually for FHA or low down payment loans.
- Sell your current home first. Yes it’s exciting to start looking, and you may even fall in love with a new home, but getting caught with two mortgages can ruin your present and future dreams for years to come.
It’s important to get pre-approved for your mortgage before you shop as well – that way, you know how much house you can really afford.
Buying a home brings many questions – join us for a free First-Time Homebuyer Seminar on January 24th!
Some of the topics that will be covered include:
- Special programs for first-time homebuyers
- Six simple steps needed to secure a loan
- Learn how to get your offer accepted in this competitive market
- Understand the advantages between pre-qualifying vs. pre-approval
- How to buy a home with little or damaged credit
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