Why Does Home Ownership Matter?

• Historically, home owners’ net worth has ranged from 31 to 46 times that of renters

• A fixed-rate mortgage might not change for 15 to 30 years; rent typically increases 3% or more per year.

Top 5 Traits Of A Home Buyer

You need to live somewhere. If you can buy a home for around the same amount you would pay in rent, and don’t mind staying put for a while to build equity, becoming a home buyer might be a good decision. You will make a good home buyer if you are:

• A BUYER WHO CONFORMS TO THE MARKET. If you are the type of buyer who says, “Every home on the market is overpriced; I’m not paying that much,” then you are not conforming to the marketplace. Serious home buyers research the market and have realistic expectations.
• A BUYER WHO HAS SAVINGS – ENOUGH TO PUT 2 TO 3 MONTHS OF MORTGAGE PAYMENTS IN RESERVE. Mortgage lenders want buyers to have a reserve, You should not take every nickel you can rub together and throw it into your home purchase. You will need a small emergency fund.
• A BUYER WHO IS EMPLOYED WITH AT LEAST TWO YEARS ON THE JOB. If you don’t have two years of employment at the same company, then two years in the same field will suffice. Lenders expect to see stability in your employment history.
• A BUYER WHO HAS THE RESOURCES AND TIME TO MAINTAIN A HOME (unless you are buying a condo) Houses require upkeep. You’ll have a lawn to mow, windows to wash, furnace filters to replace, and you may need to tend to minor repairs from time to time.
• A BUYER WHO PLANS TO STAY IN THE AREA. If your state of residency is uncertain, it’s probably a good idea to skip buying a home. Some buyers who relocate are able to rent out their home, but handling a rental long distance is not always wise. You don’t want to be forced to sell when you don’t have enough equity to pay commissions and the other costs to sell.

Get a Free Copy of Your Credit Report
Click Here