Are you ready for the commitment of homeownership?

Purchasing a home is a major commitment, so take a look at your current life situation before you start looking at houses and comparing mortgage rates.

Are there any significant life changes you expect in the next several years?

Major changes like switching careers or having a baby can have a big impact on your financial situation, so it’s important to assess how your finances might change due to significant events like this:

  • Are you comfortable committing to staying in a house for at least five years?
  • Is your income stable, and are you reasonably sure it will stay that way?
  • Can you handle repairs on the house yourself, or if not can you afford to hire a professional in the event something breaks?
  • How long should I plan to own my home to make the purchase worthwhile?

You should generally only consider buying a home if you expect to live there for 5 years or more. This is a general guideline, but can vary depending on the local real estate market, rental rates, and the size of your down payment.

Renting vs. Buying

Both renting and buying have benefits, so you’ll need to decide what’s most important to you, and what best matches your situation.

Benefits of Renting:

Benefits of Owning:

Green Check Icon
Green Check Icon
Green Check Icon
Green Check Icon

Typically the landlord is responsible for repairs and maintenance, so you won’t need to pay out of your own pocket if something breaks.

You won’t pay property taxes or homeowner’s insurance. It’s a good idea to carry renters insurance, but it’s typically a lot cheaper than homeowners insurance.

Flexibility: if you decide you don’t like the home, or need to relocate for a job or other reason, moving out of a rental is much easier. You won’t need to sell the home or find someone to rent it.

You don’t have to worry about any of the risks involved in homeownership, like natural disasters or falling real estate markets.

Green Check Icon
Green Check Icon
Green Check Icon
Green Check Icon

You can upgrade, change or improve the home as you see fit, without needing approval from a landlord.

Interest you pay on your mortgage can be tax-deductible, unlike rent payments.

Mortgage payments build your equity in the home, so a portion of your monthly payments will be building future wealth.

If you choose your home and mortgage wisely, your monthly payments will fit comfortably within your monthly budget, and you don’t need to worry about increasing rent payments as the market grows.

Evaluate your financial situation to ensure buying a house makes sense

For many people, buying a home is the largest purchase they’ve ever made. So it’s vital to be sure your financial situation is healthy enough to support the costs. Begin by taking a look at your bank accounts and bills, and figure out how much you make per month versus how much you spend on bills and living expenses. If you’ll be buying a home with your spouse, you should look at their finances as well. Once you have a good idea of your financial situation, answer the following questions.

  • Do you have a reliable income, either from a job or your own business?

  • Do your finances allow you to save some money each month, or are you living paycheck to paycheck?

  • Do you generally pay down credit card balances quickly, or do you carry debt for a long time? Persistent high balances on revolving debt like credit cards will make qualifying for a mortgage more difficult?

  • Do you have a savings already set aside for emergencies? Generally it’s best to have at least 3 months of total household income saved to deal with unexpected expenses or income interruptions.

  • Do you have money saved for a down payment and closing costs? This should be separate from your emergency savings, because you don’t want to wipe out all of your savings on a down payment.

Figure out your down payment and closing costs.

The down payment is the portion of the purchase price you’ll pay for a home upfront at closing. A higher down payment means you have to have more money upfront, but it also means lower monthly payments, and can often get you a lower interest rate. Different mortgage programs have different down payment requirements. Conventional loans usually require at least 5%, and many require more – though some first-time homebuyer conventional loan programs go as low as 3%. Federal Housing Administration (FHA) loans require at least a 3.5% down payment.

In addition to the down payment, you’ll pay closing costs, and the fees for processing and securing your mortgage. The purchase price and the type of mortgage will determine the exact closing costs, but typically they fall somewhere between 2% and 5% of the total purchase price.

women hand putting money coin in piggy bank and down payment word, Business concept.
Family on a Tropical Beach Vacation

Why Choose Us?

Our coordinated team can get your loan processed faster than the competition – guaranteed.

Our personable and extremely knowledgeable loan officers will walk you through your first home buying experience so smoothly, your worries will be left behind.

Licensing and Approvals holds a Florida Mortgage Brokers license number MBR1749, in the State of Florida. NMLSR ID #1082016. is a full-service Mortgage Broker. We are committed to providing the highest level of customer service with an emphasis on offering our customers the best advice to save on their monthly expenditures. We are set up with over 20 wholesale lenders and banks, so we can offer both traditional and nontraditional mortgage products. Even if you have been denied by traditional banks we may be able to help you secure financing.

Corporate Office is located at:

11256 Winthrop Main St.

Riverview, FL 33578

**DISCLAIMER: Please note that interest rates, APR’s, closing cost, and monthly payment examples on this page are for illustrative purposes so that borrowers can better understand how programs work. Consumers should note that mortgage rates, APR’s, and payments will likely vary from what is listed in the examples given. Mortgage rates change frequently and not all borrowers will be eligible. Additional restrictions may apply. Please call and speak with a 247 Home Loans mortgage representative for the most up-to-date information.

© 2024 247 Home Loans