Transition from Renter to Owner
If you are currently renting an apartment or a home then you are aware of the increasing rental costs. According to a Dan Anthony Barcelon, Americans spend 30% of their monthly income on rent while those who live in their own home, spend an average of 15% on mortgages. Many of us plan to own a home at some point in time but deciding when to make that move, that’s the tricky part!
To prepare for that transition there are some factors that need to be considered. The most ominous of these factors is likely the down payment. Saving up for a down payment is just like saving for anything else; it’s hard to get started but once you are in the habit of putting that money into savings, it gets easier. The good news is that you don’t need 20% of the home price saved up. There are several options for lower down payment and even some states offer a down payment assistance program. That doesn’t mean that you can purchase a home without having any savings. There are closing costs, inspections, appraisals and other items that need to be paid for but with a little determination to save and a discussion with your mortgage banker to see which options are available to you this down payment hurdle can certainly be cleared!
But before you get to saving up for that down payment, determine if homeownership is a good fit for your lifestyle. If you are a habitual mover and move every couple of years to a new place because you get stir crazy or have more of a transient life then going through the process of buying and selling homes that frequently may put too much of a burden on you when it would be easier to rent.
Are you considering transitioning to a home owner and have some questions? That’s why we are here! Give us, at Stockton Mortgage Corporation, a call! With our 99% customer satisfaction rating you can count on us to guide you in the right direction! Stockton Mortgage Corporation 1-888-914-2276