We all see in the news and hear everyone talking about how low rates are, and how now is a good time to buy. But the question is just because rates are low and home prices are still lower, are YOU ready to buy a house?
There is so much involved in buying a home and homeownership requires a commitment to not only to a property but also to a community.
There are many questions you need to ask yourself. Realistically what can I afford to pay a month? Have you sat down and looked at all the expenses you pay a month including rent, leisure activities, groceries, bills, etc. and figured out what you can afford. Not what a lender may tell you on what you “qualify” for, but really what you feel comfortable paying for a long term commitment. Owning a home you have to go into it knowing you will own for a minimum of 3 years. The average would be at least 3-5 years.
Do you know your credit? Have you or do you check your credit at least once a year? Do you make your credit card payments, student loans, car payments, etc on time? Do you have any collections? Judgements? Past bankruptcy? Repossession? Foreclosure?
Do you have any savings? Can you put 20%, 10%, 5%, 3.5% down? The minimum required is 3.5% for an FHA loan. There are down payment assistance programs,CHFA, CHAC are just a couple, to help but make sure to educate yourself about them and what is required. You can also get gift funds, another thing to research and educate yourself on.
Learn the “lingo”. Mortgage terms can be very confusing and may feel like a foreign language. Know what MIP, TIL, GFE, Basis Points, Closing Costs, Per Diem, etc. all mean. When you don’t know and can’t find the answers, ask! Give us a call, reach out to a friend, family, don’t be afraid to ask the questions. You would be suprised even most homeowners don’t know some of these terms.
If you look at your finances and have decided that you are ready to buy, here is a good checklist to read and help you in deciding and getting things in order for you to be ready to buy.
Here are some more great articles to check out.
When and if you think you are ready, check out our loan application checklist, and complete our secure online loan application. We would love to assist and help you.
If you have any questions please give me a call or email me.
Cheers~
Ray Williams
Branch Manager
Summit Mortgage Corporation
303-779-0591 ext. 101
