I want to start by saying this is not financial advice, but I would like to tell you about the positives of purchasing a home. There are both some positives and negatives that come with owning a home. A successful homeowner tends to correct the negatives at a much higher rate than those who don't. Are you wondering if you should purchase a home? Will it be better than what you are currently doing? Keep reading for some indicators of readiness and tips on how to act!
What's the number one key to being able to afford purchasing a home? The current rates and how much you can afford to use for a down payment. Often, with a 5% down payment and a reasonable APR, your monthly mortgage payment can be near the current rent costs. If this is you, think about purchasing, it feels much better spending your money on investment instead of giving it to your landlord. Although you may save money or be near it, other cost come with owning a home that often renters aren't forced to pay, like home insurance, utilities, and taxes. In most cases, you can inquire about these fees and plan for them during the purchase of your home or even pre-purchase. Personally, it was one of the first questions I asked my realtor when we were serious about purchasing my first home.
How about an indicator that tells you that you should think twice about purchasing or purchasing a home that is out or near the edge of your price range? As I mentioned, many costs come with owning a home outside of your primary mortgage payment, and if those costs are going to force you to struggle budget-wise, it may be time to rethink the purchase. In this situation, it can prove helpful to look at your budget and see if it can be limited in places. If not, saving is absolutely the way to go. You can do that in many ways at P1FCU. I particularly like the save your change option. Save your change rounds up each purchase to the nearest dollar, I used it to save for my wife's engagement ring. Another method of saving that I know is effective is having a budget that can be adjusted depending on your current income. As someone who has several side hustles, there are ways that you can use them to save. If that side hustle income isn't needed to pay your monthly bills, take that opportunity to put it all away into a savings account and pretend that it is not there like it is most of the year. For those of you who know me, I referee basketball. I often put my earnings in my savings account or leave it in my officials account and use it for things like vacations, Christmas presents, and extra mortgage payments.
Still questioning if entering the housing market is for you right now? Visit your local P1FCU, or go to p1fcu.org/mortgages to try our mortgage calculator and run some numbers. Good luck taking these important steps; we can't wait to help you with this crucial step in life.