Renting vs. Buying- What is Right for You?
Finding a home is an exciting experience, but is it right for you? There are several factors to take into consideration, such as how long you plan to be at your residence and what works best for your financial situation. To help you decide, visit our Buying vs. Renting Section to learn more.
Thinking of Buying a Home?
Finding a home is an exciting experience, but it can be long and challenging. Knowing what to expect will help you make solid decisions about the type of home you choose.
- Check your bank balance. How much do you have saved for a down payment? If you have less than 20% saved, then you may have to pay for private mortgage insurance (PMI) fees on top of your mortgage payments. Your lender must automatically cancel PMI when your outstanding loan balance drops to 78% of the home’s original value. This could take several years.
- What’s your number? Your credit score tells lenders how likely you are to pay back a loan on time. It will be used by lenders to determine whether they will lend to you and if so, how much. For more information on your credit score click here.
- How much can you afford? Using a Personal Budgeting Worksheet and Mortgage Calculator (opens new window) will help you determine a realistic mortgage amount. In addition, mortgage interest rates can impact the amount of your monthly mortgage payment. To learn more, watch this video: How Mortgage Interest Rates Can Change Your Home Buying Budget (opens new window).
- Shop around for a loan. Comparing mortgages will help you get the best financing. And, before signing, make sure that understand the terms of the loan including any fees.