Some people may be overly cautious. Others are too zealous in their goal of homeownership. The question of when you’re actually ready to make the jump into buying your first house can be tricky. It usually starts with some harmless internet browsing. Next thing you know, you’re fantasizing about having your first home. Before you start packing for the move, consider the following tips.
1. By and large, homeownership makes more financial sense than renting. If you’re living in an apartment, chances are you’re spending well over $1,000 a month for something decent. With a decent loan, you could be paying much less in a monthly mortgage payment. Owning a home also allows you to build equity, which is important in building wealth.
2. Be ready to make a long-term commitment. This should go without saying, but it’s important to understand that a home is more permanent than renting or cohabiting. Make sure you’re job and/or relationship situation is somewhat stable. Of course you can always sell, but it will be more complicated than breaking a lease.
3. Take note of your debt-to-income ratio and credit score. These two factors play a major role in your home loan application. You should also have enough cash to place a significant down payment.
4. Know your local housing market. Las Vegas has had plenty of ups and downs over the past decade. Thankfully, the worst of the housing crisis is over. Homes are being built and sold in Las Vegas once again. At Premier Mortgage Lending, we can help first-time homeowners qualify for a low rate that may make ownership seem even more attractive.