Financial Preparedness: Wanna Buy A House?

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:

  1. Can you make at least a 20% down payment? (20% down usually means you do not have to have mortgage insurance as well.)
  2. 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.)
  3. 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.

Happy Prepping!

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