Factors to consider before buying a home
As with any major financial decision, buying a home isn’t just about one thing. Here are some factors, aside from great mortgage rates, to consider.
Think it Through First
Before you start browsing Zillow, think this decision through. Are you financially stable enough to take on the responsibility of owning a home? Remember: The mortgage is just the start. Owning a home comes with regular maintenance, closing costs, home inspection fees, possible HOA dues and more. Use an online calculator to see how owning a home will impact your finances. You don’t want to buy a home and have little wiggle room after the mortgage is paid each month. That will not be sustainable.
Get to 20
How much you need for a down payment can vary depending on the cost of the home and the type of loan you are considering. Typically, down payments range from 5% to 20%. Contribute that 20 percent if at all possible. This allows you to avoid paying private mortgage insurance and reduces the amount of interest you’ll pay on the mortgage.
Don’t worry if you’re not ready just yet. There’s time. Make sure you’re prepared for the home expenses first, then log onto Zillow.
Connect with Us
Getting a mortgage is a big step with plenty of moving parts and decisions to make. We’ll be here to answer your questions and guide you as little or as much as you need. Visit our Home Loans page to learn more.
Adapted from an article distributed in partnership with SavvyMoney with reporting by Chris O'Shea