Understanding how to buy a home is easy. That’s why we wrote this for you. It’s a short read on how to get started as well as why it’s a smart choice as opposed to renting. You can also skip the article and start looking at homes here.
Have you been contemplating the idea of owning a home? Maybe you’ve been on the fence but it seems overwhelming or too expensive. Well I’m going to show you exactly how easy it really is.
Renting Vs Buying
So let’s say you’re paying $750/month for your apartment. Did you know you can own a home for that same monthly payment? A $115,000 house or $90,000 condo to be exact.
What Are The Upfront Costs? Lets pretend you’re buying that $90,000 condo. Loans today can go as low as 3.5% down. That means you only need $3,150. There are extra “closing costs”, but it’s perfectly acceptable to ask the sellers for help if it’s not in your budget. $3,150 up front and $750 a month is all it takes!
Financial Perks: Lets say 5 years after you buy your home you decide to move; this means you have to sell it. You bought it for $90,000, sell it for $100,000, and still owe $78,000 on your loan. After you sell, you’ll make $22,000. Even after you pay your closing costs you will make a profit. Had you been renting at that $750/month instead? You would have lost $45,000.
Even if you lost money when you sold the home then you’re probably still better off. You would have to lose more than $45,000, which would be highly unlikely. So even when you “lose” you actually win compared to paying rent.
How Do I Get Started?
1. The first thing you should always do is talk to a lender to find out what your budget is. This could be your bank, credit union, or a private mortgage lender. Your lender will also be able to tell you how to better your credit, pay off debt, etc. to make sure you have the most buying power.
2. Once you know your budget, start thinking about where you want to live and the type of home you want. Now is the perfect time to talk to a REALTOR®, because they can point you in the right direction and explain how the buying process works.
3. Once you start seeing homes that you like, schedule appointments with your REALTOR® to go see them. When you find something you like, it’s time to write an offer!
Have more questions about the next steps? Contact me or anybody from the DiMora Team and we’re happy to get you started!
Adam Somers, REALTOR®
DiMora Team, KW
(734) 751-5508
adam@dimora.com
*Adam Somers has been a REALTOR® with the DiMora Team for three years and has a Bachelors Degree in Finance from the Univeristy of Michigan. For a more in-depth analysis of a potential mortgage and the costs associated with it, please contact your lender or a member of the DiMora Team.