Just because your best friend just bought a home does not mean that you are financially ready to purchase one yourself.
You do not know their full true financial situation and unless you have set down and written down all your own expenses and income, you do not know if you can afford buying a home yourself. Just because you think you can make a certain house payment does not mean you can.
Yes, I understand you want to move out of your apartment or parents’ house and finally have your own house, but you first need to look at your own financial plan before purchasing your brick and mortar home. So, before you start looking for your dream home you need to look at your personal financial information.
What are my bills? This includes your monthly expenses like utilities, rent, insurance, credit cards, food, gas, clothing, automotive repair and maintenance expenses, and any other monthly expense you have. When you need to pay child support or have judgments you are paying on, you need to include them. Garnishments will show up on your paycheck as deductions.
What is my income? Pull up at the minimum 3 months of current and consecutive paychecks. This will give you a good average of your income situation.
Have you looked at your current credit report? I don’t mean looking at your credit score. I mean looking at the things that are listed in your credit report. Every time you are late with any form of payment it is being reported to the credit reporting agencies.
After looking at your entire financial situation, you can then determine if you can afford a mortgage payment of no more than 25% of your monthly take home pay. That mortgage payment needs to include the insurance and taxes on the home you are planning on purchasing. If the proposed payment of a house you are considering causes you to need a 30 Year mortgage, you may need to consider the size of home you will purchase, or you need to pay off some of the current expenses you may have.
Why should anyone try to acquire a 15-year mortgage for your home purchase? Very simple. You should be able to own your home free and clear and not have a mortgage payment for the rest of your life.
“I love showing homes when it rains”. I am sure you think this sounds like a very strange statement I am making. During the Fall season the weather is more rainy and the chance to see a home when it rains is much greater.
Many families have High School Seniors who graduated and are now leaving for their first year to college. To save money on room and board some of the parents decided to buy a second home for their student to live in and later to use as potential rental.
Ever since the mortgage rule changes that went into effect in 2009, a small but ever growing title wave has been building. Individuals who lost their jobs during the downtrend of the market and decided to go back to school to earn a different degree, or updating their personal education, to put them into a better position for a better paying job. They are not only facing an ever tighter job market but also have put themselves financially behind the 8 ball when it comes to being able to qualify for a mortgage.
Many times when a home is bank owned (REO) the utilities are not turned on. This could be for several reasons.