Sun, 21 Jan 2018 by Steve Klein
If you’ve been renting for a while, you may be dreaming of owning one of the new homes in Victoria TX. Moving from renting to owning a home is a big step, but it can be easier if you take it as a series of smaller steps. Here is some advice to help you make the move into a new home of your very own:
- Make sure you are ready to buy a home. If you plan to stay in one place for five or more years, it’s usually advantageous to buy rather than rent. As an owner, you must also be ready to be responsible for maintaining your own home, whether you do the work yourself or hire someone to take care of yard work and upkeep.
- Start saving for a down payment as soon as you decide you want to buy a house. You will most likely need to put down 20% to avoid private mortgage insurance, although some first-time homebuyer programs may require as little as 3% down. Also have money set aside for closing costs, typically 2-5% of the home price.
- Make sure your credit is in good shape. Check your credit reports with Experian, Equifax and TransUnion and check your score at myfico.com.
- Get your proof of income documents organized. These include recent pay stubs and bank statements as well as two years of income tax returns and W-2’s.
- Look into first-time homebuyer programs. They can help make purchasing your first home more affordable.
- Get pre-approved for a mortgage. Remember that the monthly mortgage payment is not your only expense. As a homeowner, you’ll be responsible for property taxes, homeowners’ insurance, HOA fees and most likely more utility bills. The mortgage payment, taxes and insurance added together should be within 25-30 percent of your monthly budget.
- Start looking at homes in your price range and in the areas you are considering. Visit at various times of day and the weekends as well as weekdays to get a fuller picture of what it’s like to live there.
- When you find a home you like, have it inspected. You’ll have to pay for this, but it’s worth the peace of mind when making an investment in your first home.
Steve Klein Custom Home Builder can help you leave renting behind when you purchase one of their new homes in Victoria TX.