ARE YOU READY TO BUY A HOUSE?

By
Real Estate Agent with CENTURY 21 CITRUS REALTY

Owning your own home is the American dream. It's also the largest investment most of us will ever make, so go into it knowing what you'll need when you go from tenant to owner -- and what you won't need.

Here's what you'll need:

1. Enough money to make monthly mortgage payments. 
Duh! If a mortgage payment will bust your budget, you can't get rid of your landlord yet. Use our mortgage calculator to estimate your monthly payment.

 

2. Enough income to pay property taxes and homeowner's insurance. 
The mortgage isn't the only cost you'll have each month. You also have to pay taxes and insurance. If you can't make those payments, say bye-bye to the house.

3. The ability to maintain the property.
You must keep a home in good repair or it will lose its value and you'll lose money. You can do the work yourself or pay someone to do it. Either way, you can't ignore the peeling paint and the window that won't close like you did when you were a tenant.

4. A decent credit record. 
If you have lots of late payments, have declared bankruptcy or left old debts unpaid, it's harder to get a mortgage. And if you do get one, your bad credit record will make you pay a much higher interest rate.

Here's what you won't need:

1. A big down payment.
It's best to make a big fat down payment so you can skip paying private mortgage insurance and lower your monthly payments, but you can buy a house for almost nothing down.

2. Experience
In most major cities, real estate companies hold home-buyer education classes for first-timers. Go, even if you have no immediate plans to buy.

 

 

Comments (1)

Doug Rogers
Bayou Properties - Alexandria, LA
Your Alexandria Louisiana Agent

Number one is key. Buyers need to be both honest and conservative with this figure. "I'll probably get a raise next year" is no way to plan a budget.

Apr 07, 2012 02:39 AM