| HOW TO TELL YOU’RE DONE WITH RENTING AND READY TO BUY |
| Are you ready to make the leap from renter to homeowner? Buying a home may seem more complicated than paying rent once a month. Yes, there’s some work that goes into purchasing a home, but we can make the financing part simpler, and a good buyer’s agent will ease the rest of the process. In the end, you’ll live in a property you can call your own. Instead of enriching your landlord, part of your monthly mortgage payment goes to you as you build equity in your home. Plus, in many areas, your monthly mortgage payment may wind up lower than your rent. You’re ready to be done with renting and ready to buy your first home when: |
| Your rent keeps going up. If you’ve been renting for a few years, you know your rent can rise at each lease renewal. Zillow reports the typical rent for a multifamily unit went up 0.7% in March, outpacing the 0.6% month-over-month rent gain for single-family homes for the second straight month. Experts expect rent prices to keep rising. But for homeowners with a fixed-rate mortgage, the monthly payment doesn’t usually increase, which is one less thing to worry about. |
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| You know where you’ll be for a while. You’re happy with your job. You have a good idea where your life is headed in the next few years. You don’t anticipate making a career change or relocating to another part of the country. So, if you’ll be staying where you are for a while, it certainly makes sense to put down roots and buy a home. Your income is steady. If your finances are in good shape and you have a stable income, you’re more likely to be approved for a loan. Plus, your solid financial situation lets you take on the responsibility of maintaining a home. |
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| You have started saving. If you’ve started saving, you’re already on the right path to homeownership. Beyond the cost of the home itself, it’s important to plan for additional expenses like closing costs, moving, furnishing your new space, and any initial updates you’d like to make. It’s also wise to set aside funds for unexpected repairs. Every situation is unique—reach out to me to discuss how your savings align with our product offerings and what you may need to get started. |
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| You’re paying down your debt. You needn’t be debt-free to get a mortgage. When I review your application, one of the key things I look at is your debt-to-income ratio (DTI). If your DTI isn’t too high and you’re consistently paying down your debt, that’s a great sign. You have checked your credit score—great step. Your credit score plays a role in determining which mortgage options may be available to you. If you’ve been managing your finances responsibly, your score may be in a good range, but requirements can vary. For the most accurate guidance, connect with me to review your credit and explore the programs that may be a fit for you. You’re also entitled to a free credit report every 12 months from each of the three major credit bureaus at AnnualCreditReport.com. |
The Jim Passi Team at Citywide Home Loans proudly serves Illinois, Wisconsin, Michigan, Indiana, Georgia and Flordia. If you are looking to buy a home or refinance, we have you covered. Apply Now to get started.
