While it could be acceptable to buy a new cell phone or even
appliances on the impulse, buying your house requires thoughtful research and
preparation. Purchasing a home is a demanding
financial and emotional decision. You should not go into these decisions
lightly or alone. It is best to have a
team of trusted professionals to assist you at this time. These team members
may include a realtor, a lender, a
lawyer, a home inspector, and others.
Questions to ask yourself before beginning your search:
Are you financially
prepared for Homeownership?
While your dream home may or may not be within your reach
today there are steps you can take to become a homeowner from the moment you receive your first
paycheck. In order to qualify for a mortgage you will need to have good credit.
You need to show a consistent pattern of paying your bills by the due date and
accumulating savings, and a debt-to-income ratio (your gross monthly income
compared to the minimum payments on all recurring debts like credit cards) of 43%.
Several lenders have tighter guidelines, so the lower debt-to-income ratio
rating, the higher your chances of getting loan approval you are desiring.
Loan programs can be found with down payments of 3. 5% - 5 %,
and a there are still a few programs left
that offer a no down payment option. You’ll
still need to have some savings to cover closing costs in addition to moving
expenses, a deposit on a home, and for cash reserves when you buy. Saving money
in addition to preserving or improving your credit rating are essential factors
to homeownership.
Why Do you want to
Buy?
The emotional area of the home purchase decision comes in to
play when you begin to consider why you desire to move. You may need stability
in your career or wish to commit to moving into the same neighborhood for 5-7
years. You may even desire to establish roots in a neighborhood you are fond of
or even just want the freedom to decorate
and customize your living space without a restrictive landlord’s agreement.
Purchasing a home can be a lifestyle choice that requires
you to consider how you like to spend time and the type of community where you
intend to live. Some would choose a rural area devoid of nearby neighbors over a high-rise building in a city or possibly a
home within a organized community with fun amenities. The more clearly you set
your priorities for the home, the easier will probably be for you for you to
narrow your real-estate decisions.
Homeownership can also be considered a powerful way to raise
your personal wealth and even the wealth of your family. As time goes by the payments you
make on your home are adding to your investment, since you will end up building
equity you will be building your nest egg.
How much of a Loan
can you Afford?
You will find a wide array of pricing differences from
states to different towns and communities. Housing prices and rents are
different everywhere, but you need to consider a rent vs. buy calculator to
truly estimate the difference between your current rent and purchasing a home.
In some locations buying your home can cost the same or even less that where
you are currently renting. There are additional cost and fees for being a
homeowner. A homeowner it is strongly advised to included homeowners insurance
coverage, property taxes ( in addition to homeowner association dues) as part
of your housing costs. Your Real Estate Agent or Lending Agency can help you
with those figures. You should also take into consideration future plans. Will
you be needing a new car, furnishings, medical or dental services, is there a
baby on the way? Your plans, money, how you would spend your money, and your
comfort level all need to be considered when calculating the mortgage payment
you can afford. A lender will tell you how much it is possible to borrow, but
that lender won’t know how much you invest in travel or tennis or your plans
for potentially reducing your work hours once you have a family. Keep all of
these things in mind before setting your sights on a long term investment.
Once you’ve thought through all of the emotional and
financial considerations to becoming a home owner, your next step will be to
find a trusted, experienced Realtor. This person will be your partner within
the home-buying process. Also, you should meet with a reputable lender who help
you obtain the best financing your home purchase.
Mary Zohar is a long-standing member of the Coldwell
Banker North Tampa Office and an active member of the Greater Tampa Assoc. of
Realtors. Besides having a Bachelor in Science from the University of Florida,
she holds: Certified Home Marketing Specialist, Certified Negotiation
Specialist, e-Pro, Short Sale and Foreclosure, and Accredited Buyer
Representative certifications. And is current in Continuing Education and
licensure for the State of Florida.
Having lived in the Tampa Bay area for
over 30 years makes her an expert in the market as well as the community at
large. If she doesn't know what you're looking for, she surely knows who to ask
or how to find out. Watching Tampa Bay grow, after these years makes her
knowledge priceless. She can be reach at 813-962-0631 and is eager to assist
you with all of your Real Estate needs.
