You might feel ready for home ownership but don't know how to come up with a 10 percent down payment. Instead of closing off your opportunity, there are other options to conventional loans one of which is an FHA loan. An FHA loan offers first-time home buyers an opportunity to put less money down on a property.
Questions to Help Make Sure You're Ready
Buying a house is the single largest purchase most people make in a lifetime. So, it's important that you feel comfortable with your decision It can be a confusing time if you're conflicted about taking on the responsibility. Here are some questions to ask yourself before you start looking for homes:
- Do I need to buy a home right now?
- Is my income likely to go up or down?
- Will I stay in the house long enough to reap the rewards of buying it?
- Have I saved enough money?
- Am I ready to take on the maintenance and care of a home?
Home Ownership Has Its Advantages
Now, let's look at some of the advantages of owning your own real estate:
- Greater privacy.
- Most home increase in value, so you can build a nest egg for the future.
- Your costs are more stable than renting if based on a fixed-rate mortgage.
- The interest and property tax is a tax deduction.
- Homeowners typically feel a greater sense of community and get involved in neighborhood events.
- Affordable options exist, such as applying for an FHA loan.
Next Steps
If you are interested in becoming a homeowner, you should consider taking an online homebuyer education course to learn how to prepare for homeownership and get a better understanding of the home purchase process. Then, you should discuss your financial options with a financial planner or mortgage company. After you have a number in mind, get started looking at homes.
