Some Guidelines in Finally Owning a Property
The percentage of families in the US who owns the house they are living in is 63%, while the rest of 37% of families are still renting the place they live in from their landlords. Many people look at renting as a simple way of throwing away one’s money even if there is nothing wrong in renting, and this is because they believe that you are just putting your money into the pocket of your landlord thus gaining nothing, instead of paying to be able to purchase the property.
The average cost of a two bedroom family home is around $800 per month in rental. Thus, with this condition, an average of $9,600 per year is being thrown by the renter to the pocket of the landlord. Some would look at it as a lot of funds wasted every month, and so many families are trying to buy a property rather than continuously renting a home.
Bear in mind however that the situation of renting to buying can be tricky for families concern. With that precaution in mind, here are some tips to follow to help families transition themselves from renters to owners, that will make the situation a little smoother once they want to take the opportunity of owning their homes.
The number one tip that you should consider if you want to own your home is to save, save and save for it. Placing a deposit is the first chance to be owning a property. Generally, when you look at a property, you will be giving a deposit of around ten percent of the property. And so, if the price range of the home you are checking out is around $300,000, you would be needing $30,000 as your deposit. And of course, the lower the amount of the place you are looking at, the lower your deposit will be. The key therefore is to have a family budget in place and make sure each member will stick to it to make your savings easier. It may take time to accomplish your savings but by savings whatever you can after the rent and other bills, you will reach it in time.
When you have your deposit in place, your next step is to look into home lending companies which offer terms and advice on how to get a mortgage. Take note that if you have bad credit or do not have reasonable income, it might be difficult to get a mortgage. This does not need to discourage you since you can try other companies if you are not successful the first time you apply.
If you are sure of the financial preparation of your goal to own a home, your next move is to go on a house hunt, without necessarily submitting your notice to your landlord.
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