Do you feel frustrated that your homeownership dreams seem to be stuck in a limbo? It feels like no matter how you look at it, owning a house will forever remain a dream.
Buying a house is a huge undertaking. However, it doesn’t mean that you can never be the homeowner you wish to be. To be a homeowner entails a lot of sacrifices. If you’re willing to do whatever it takes to achieve your homeownership goals, you’re one step ahead of those who are just stuck in dreaming.
Planning is crucial when you want to purchase a house. It is okay to be ambitious, but you have set goals that are realistic, achievable and incongruent to your present situation.
When we set unrealistic goals that are way too high for us, we may end up frustrated after trying so hard in achieving it and fail. But when we set achievable and realistic goals, we can work more easily towards realizing these dreams.
Here are some things you must consider when planning for a home purchase. These tips will guide you in setting sensible and achievable homeownership goals.
Ask yourself, “Where am I in my life right now?
Ask yourself this basic question to self-assess your current situation. Will your present life situation allow you to afford a mortgage? Will a foreseeable life event prevent you from making monthly payments should you take a loan today?
We look at homeownership as though only our finances affect it. However, all aspects of our life will have a huge impact on homeownership.
If you are planning to get married soon, for example, will this help or make it harder for you to afford a house? If you’re working as a project-based employee, are you sure that you will still have enough funds after your work contract ends?
Where you are at this moment in your life and what things can happen in the near future will play a huge role in your home buying journey. Make sure that you are really ready to take on this big responsibility.
Come Up with a Realistic Budget
We all have a vision of the perfect house we want to have. However, we may not be able to afford it.
Instead starting your homebuying journey by looking for a property, consider having yourself preapproved of a loan first. This way, you will know how much money a lender will be willing to lend you. This is when you will start searching for a house that fits the budget. If you do this, there is a greater chance that you will be able to afford the monthly payments until you completely repay the loan.
On the other hand, if you start by finding the perfect home and then try to squeeze out every dollar from your pocket just to afford it, you may just exhaust yourself and your finances just to keep up with the payments.Find the best mortgage rates, click here.
Distinguish Needs from Wants
We all have preferences. However, the essentials should always be on top of the list.
Make a rundown of the house features that you can’t live without and the ones you can let go. Prioritize on looking for a property that has those essential features. the house’s additional features should just be an added bonus.
Perhaps, you’re a home-based professional. Would you really need your own home office or will a multipurpose space work just as fine? Or maybe you really like your home to have a sunroom, but is it worth the price tag?
Know clearly your needs and wants. This dictates the kind of house you should get. Moreover, It will set the property’s price.
Do You have Stable Income?
Income stability is very important for lenders. They need to see solid proof that your income and cash flow are stable enough to afford a mortgage.
Home loans typically require you to be in the same job and with the same employer within the last 30 days, the very least. Hopping from one job to another can be a red flag. But if it’s really necessary for you to find a new one, at least try your best to stay on the same field. Shifting into another field of work not related to the previous one will suggest that you’re most likely to start again from square one.
The FHA, on the other hand, is a good example of a loan that doesn’t require this. There’s no minimum employment period in the same position or employer required. However, the FHA will verify the most recent two years of your employment. You will have to provide a written explanation for any significant gaps and unusualities in your employment record.Talk to a lender today, click here.
Do you have a stable income but couldn’t qualify for a conventional loan? This can happen to certain people. Some loan applicants may not qualify for a conventional loan due to the lack of some necessary documents to support their income claims.
This is common for self-employed individuals or for those who are earning by commissions. They lack some income verification documents, but this doesn’t mean that they can’t afford a mortgage.The stated income loan can be an option for them. With a stated income loan, a borrower will have to declare their income and the lender will have to take their word for it. You won’t have to undergo the standard income verification process, but the lender will still check for your assets. Of course, you have to be responsible enough to repay the loan completely.Connect with a state income lender, click here.
After setting the right expectation and a more realistic goal, it is now time for you to work your way up the homeownership ladder. Start by asking different lenders for the loan rates, down payments and terms.
Shopping for lenders and understanding the available home financing options will help you in finding the perfect program. Once you’ve found the right mortgage loan and the right house to purchase, you are only a few steps away from realizing your homeownership dreams.Click to See the Latest Mortgage Rates»