Renting your home is a waste of money. It’s taking your income and throwing it directly into the pockets of someone else. That’s a fact. However, many people still think that they can’t afford to buy a house. There are so many programs out there to help first-time home buyers and people that want to buy a home that almost anyone can do it! There are programs to help you save for your down payment, down payment assistance programs, lower down payment loans, and many other ways to help. Renting is throwing money away, so let’s figure you out a way to buy your dream home!
The first step is to save up for the down payment. It’s literally the first barrier to entry. However, 20% is no longer the only magic number. If you want a Conventional mortgage, sure, you need 20% down. Lots of people just can’t get there, though. If you are in this category, an FHA loan with only 3.5% down could be the way to go. If you are military, a VA loan doesn’t even require a down payment! So many people have no idea that these loans even exist, and assume that without 20% down, they are shut out of the market, and it couldn’t be further from the truth.
While you’re saving, you also need to get your credit in order. If you have a really high debt-to-income ratio, defined by the amount you owe versus the amount you make, then you may have trouble with gaining financing. If your credit score is low, start making payments on time and pay down your credit cards and other high-interest debt. Make yourself more appealing by becoming more financially responsible. I know, it’s hard, but if you want to own a home, you have to make the hard choices and get your credit to where you look like a good candidate.
Do you have reliable income? If not, buying a home may be difficult. While you can buy a home as a contractor or someone that has a more volatile income stream, you can still do it. You should also plan for the future. Are you planning on kids> If so, will you still be able to afford this mortgage? Make sure that you aren’t setting yourself up for failure.
Rents are rising nationally, and interest rates are near record lows. Now is the time to stop throwing money away on rent and buy a home.
If you’re ready to take rising home rates and low interest rates and use them to your advantage, call us at 800-991-6494. You can always apply online at www.thehomeloanexpert.com, and we’re also open on Saturdays to better serve you. We work hard to make it easy on you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?
The Home Loan Expert
