Hey y’all! Happy Thursday! Well, it’s summertime (and if you live in Texas, it’s been summertime for a while now)… the kids are getting out of school, the weather is nice, families are going on vacations. It’s a great time of year. And generally speaking in the real estate world, this is also a great time to buy a house. So whether you are thinking of being a first-time home buyer, or you’re just looking to relocate or move to something more affordable, here are some tips to consider (suggested by Dave Ramsey) when you’re wanting to buy a home:
- Can you make at least a 20% down payment? (20% down usually means you do not have to have mortgage insurance as well.)
- Can you afford a 15-year fixed rate loan? (Do not go for a 30-year loan and do NOT do an adjustable rate mortgage with the expectation that you’ll sell the house before the higher rates kick in.)
- Would the monthly payments be at or below 25% of your monthly take-home pay? (So if you bring home $3000/month (net), your monthly payment would be no higher than $750. If you bring home $10,000/month, your monthly payment could be up to $2500.)
If you can answer yes to all three of those questions, then buying a home may be the right move for you. If not, you may want to wait for that dream purchase. Buying a house is a big responsibility and you do not want to sink yourself before you ever have a chance to swim. Be smart in your purchasing and you will have joy and peace in your happy home.