{"id":627,"date":"2017-05-27T12:44:12","date_gmt":"2017-05-27T12:44:12","guid":{"rendered":"http:\/\/www.mikeclover.com\/blog\/?p=627"},"modified":"2017-05-27T12:44:12","modified_gmt":"2017-05-27T12:44:12","slug":"are-you-financially-ready-for-home-ownership","status":"publish","type":"post","link":"https:\/\/www.mikeclover.com\/blog\/2017\/05\/27\/are-you-financially-ready-for-home-ownership\/","title":{"rendered":"Are you financially ready for home ownership?"},"content":{"rendered":"

\"Woman<\/a><\/p>\n

If your dream of home ownership is becoming more of an obsession than a dream, it\u2019s time to take a look at your finances and see if you\u2019re ready to make the leap.<\/p>\n

If you can answer yes to these 5 questions, then it\u2019s time to get serious about seeing a lender, getting pre-approved, and beginning the home search:<\/p>\n

    \n
  1. Am I planning to stay in the community for the foreseeable future?<\/strong>
    \nThis has nothing to do with your finances, but it is the first consideration. It\u2019s not wise to buy if you know you\u2019ll need to sell in just a couple of years.<\/li>\n
  2. Am I debt-free and do I have money in the bank?<\/strong>
    \nNot only do you need money for a down payment, you should have an emergency fund equal to at least three months\u2019 of routine expenses.<\/p>\n

    This will ensure that you\u2019ll be able to handle unexpected expenses and<\/u> unexpected gaps in income. You don\u2019t want to lose your home because of an accident, illness, or job lay-off.<\/p>\n

    If you\u2019re not there quite yet, get started! Pay off your debts one-by-one until they disappear. When one is paid off, add that payment to the account that\u2019s next on your list. When you have them all out of the way, commit those funds to your savings account.<\/li>\n

  3. Do I have an adequate down payment saved?<\/strong>
    \nWhile some programs are offering extremely low down payments again, taking advantage of them isn\u2019t always wise. Strive for at least 10% down \u2013 and go for 20% if you can. Once you reach the 20% mark you\u2019ll be able borrow without the burden of paying mortgage insurance.<\/p>\n

    That will not only feel good because you\u2019re not throwing money away, it will mean you are able to spend more on the monthly principal and interest payments. After all, mortgage insurance adds approximately 1% of your loan balance to your monthly payment. (On a $200,000 mortgage loan, that\u2019s $2,000 per year, or $166 per month.)<\/p>\n

    Speaking of that payment, it\u2019s wise to limit your payment to no more than 25% of your monthly take-home income.<\/li>\n

  4. Do I have enough extra to pay my closing costs?<\/strong>
    \nWhile it\u2019s true that some sellers will agree to cover those costs, not all do. You should be ready to pay them yourself. These costs can amount to between 2 and 5% of your home\u2019s purchase price, so for a $200,000 home you\u2019ll need between $4,000 and $10,000.<\/li>\n<\/ol>\n


    \nWhat are these costs?<\/strong><\/p>\n

    The loan origination fee<\/p>\n

    Home and pest inspection fees
    \nAppraisal fees
    \nPrepaid property taxes, homeowner\u2019s insurance, and mortgage insurance
    \nTitle insurance to cover your lender
    \nRecording fees
    \nUnderwriting fees<\/p>\n

    Different lenders charge different fees, so you won\u2019t know the exact amount needed until you\u2019ve made your loan application. Be prepared!<\/p>\n

    You are entitled to receive your final closing papers 3 days prior to closing, so be sure to read the fees carefully and do question anything that wasn\u2019t in your original estimate and anything for which the amount has changed dramatically.<\/p>\n

      \n
    1. Can I afford the cost of moving?<\/strong>
      \nYou may have friends with trucks and muscles who will help you do the actual moving, but even if they work for free you\u2019ll be expected to provide refreshments. And if you don\u2019t have those friends, you\u2019ll need several hundred dollars to pay a commercial moving crew.<\/p>\n

      In addition, you\u2019ll need to purchase supplies such as packing boxes, bubble wrap, tape, marking pens, etc. You\u2019ll also need cleaning supplies, and if you plan to do any painting or other fix-up before you move in, you\u2019ll need those supplies.<\/p>\n

      Now add in deposits on utilities and the cost of any appliances that weren\u2019t included in your home purchase.<\/li>\n<\/ol>\n


      \n<\/strong>In order to plan ahead, get estimates for these items, then pad that budget a little to allow for something unexpected.<\/p>\n

       <\/p>\n

      Don\u2019t ignore this major money-saving move: Hire a buyers\u2019 agent. <\/strong><\/p>\n


      \n<\/strong>Hiring a buyers\u2019 agent is one of the most important things you can do to ensure a smooth transaction.<\/p>\n

       <\/p>\n

      Because agents are familiar with the houses in their market, and because they have access to both the MLS notes and the listing agents, your agent can shave days or weeks from your house hunt.<\/p>\n

       <\/p>\n

      Because agents know the going prices in their markets, an agent can also guide you in making reasonable offers and protect your interests in negotiations.\u00a0 They\u2019ll also keep you out of trouble by making sure you\u2019ve seen all the appropriate disclosures and have included the correct contingencies in your offer.<\/p>\n

       <\/p>\n

      Except in special circumstances, buyers\u2019 agents are paid by the seller through the transaction, so you get valuable protection at no additional cost to you. Don\u2019t risk purchasing a home without it!<\/p>\n

       <\/p>\n

      Are you ready to get pre-approved and start the search for your new home?<\/p>\n

      <\/strong><\/p>\n

      If so, or if you\u2019re not quite sure, get in touch with us at Homewood Mortgage \u2013 the Mike Clover Group. We\u2019ll be glad to answer your questions and do a pre-approval to let you know exactly where you stand.<\/p>\n

       <\/p>\n

      We offer fast service and the lowest rates and fees available in Texas, so call the Mike Clover Group at 469.621.8484.<\/strong><\/p>\n

      \"mike-clover-group-email-signature-muy-grande\"<\/a><\/p>\n

       <\/p>\n

      \n
      \n
      \n
      \n

      Mortgage Banker<\/p>\n

      \n
      \n
      \n
      \n

      Homewood Mortgage,LLC<\/p>\n

      O: 469.621.8484<\/p>\n

      C: 469.438.5587<\/p>\n

      F: 972.767.4370<\/p>\n

      18170 Dallas Parkway<\/p>\n

      Ste. 304<\/p>\n

      Dallas, TX 75287<\/p>\n

      NMLS# 234770<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

      If your dream of home ownership is becoming more of an obsession than a dream, it\u2019s time to take a look at your finances and see if you\u2019re ready to make the leap. If you can answer yes to these … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/posts\/627"}],"collection":[{"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/comments?post=627"}],"version-history":[{"count":1,"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/posts\/627\/revisions"}],"predecessor-version":[{"id":629,"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/posts\/627\/revisions\/629"}],"wp:attachment":[{"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/media?parent=627"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/categories?post=627"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/tags?post=627"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}