To qualify for a mortgage, you’ll generally need some cash savings (your down payment) plus a minimum credit score. If you’re using a conventional lender, they may require 2-10% down depending on your credit score. Lenders’ guidelines can change frequently, so it’s best to talk to a professional who works with lenders about what’s acceptable. You may want to get preapproved before shopping around.
mortgage
Can I afford my home?
The monthly payments on a mortgage should not exceed 30% of your gross income (before taxes). You might pay less if you take advantage of special financing options or refinance to a lower interest rate.
What kind of property am I buying?
A lot of people assume that all homes cost about the same amount. But that’s not true – just like cars, houses differ greatly in price based on location, size, age, etc.
Do I need a mortgage?
If you purchase a home without a traditional mortgage, you’ll likely be paying private mortgage insurance (PMI). PMI costs between 1% and 4% of the total value of the home each year. A small upfront fee helps cover the cost of insurance.
Where am I buying?
Buying a home depends on where you live. 6. How much does a house cost?
Here are some averages: $200k-$300k: 1 bedroom; $400k-$500k: 2 bedrooms; $800k+: 3+ bedrooms
Does it cost more than rental?
Depending on local market conditions, renting could actually save you money! On average, renters spend about 5% of their incomes on rent compared to homeowners spending at least 10%. Renters may be able to avoid many of the costly expenses associated with owning a home, like homeowner’s insurance, maintenance, repairs, and property tax.
