Upgrading from Renter to Ownership: Are you ready?
The time may come when you’re ready to switch hats from renter to homeowner. Here are some things to consider:
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Credit Score - Before you start considering homeownership, you have to make sure your finances are in order. Youre credit score plays a significant role in your finanginc options. The lower your credit score is, the more fees and higher monthly payments you’ll wind up paying in the end. If you have a score of at least 650, depending on your lender, you should be eligible for financing.
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Down Payment - You’ll also need to make sure you can afford all of the upfront costs and fees that come with a home loan. When it comes to down payments, lenders generally ask for about 20% of your loan initially; but, there are other options. Click here to contact our office to discuss options for you.
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Maintenance - The long-term costs are another thing to consider. Owning and maintaining a home can be costly. Everything from landscaping to household repairs will be your responsibility. You should take things like your home’s age, location and region into account. Is your home in an area that’s prone to flooding? What about natural disasters? How long ago was the roof replaced? Click here to discuss what you might need to prepare for.
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Stability - Another large factor in deciding to buy a home relies largely on how stable you feel in your life. If you’re buying a home for the long-term, you want to make sure it will get you through all of the changes your life will go through in that time. Make sure you check out the school districts in your area if you’re thinking about having kids. How close is it to public transportation? What about the seasonal patterns? Click here to have John Lewis & Associates provide you with information on the neighborhood you’re interested in.
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Investing - Buying a home can also be an investment, depending on the market. Your new home can help enhance your wealth. If you keep your eyes on the housing market and find a home that you can afford, it might not be a bad idea for you to invest in a home. To find out more about investing in real estate, click here.
To discuss your interest in homeownership, as a first time buyer or a seasoned investment professional, please contact us.