The fact is that are loan programs that you can apply for, which allow you to purchase a home with very little or even no money down.
We cannot stress how important it is to buy your first home as soon as you can. The benefits are great. Look at the following two sample scenarios:
| Renting | Buying |
| $1,200 a month Rent. In 12 months you have paid 14,400 that went towards your tenant’s account. |
Home Value: 150,000 Initial Down Payment: 5,000. Monthly Mortgage Payment: 1,200 Total investment: 19,400 |
| Total Assets after a year: Zero | Total Assets after a year: Any appreciation the house received during that year, plus any money that you have paid to the principal of the loan. |
The difference is that you are making a payment for a mortgage loan, but chances are your home value increases during a period of time. That means that if you bought the house for $150,000 after a year of making payment on that mortgage loan, you owe less than what you started with, and the house is worth more.
This difference you could easily see if you sold the house, as money that you receive, minus any fees for selling it.
One risk when buying a home is the risk of not being able to continue making monthly payments, and therefore loosing the home when the bank decides to foreclose on it.
This is calculated risk that we all take when making any major purchase and that although should be considered, should not deter anybody from buying a home
Some expenses you need to consider are property taxes and insurance. Use our Mortgage Calculator to find out how much of a home you can afford. Many banks and mortgage companies will allow you to include taxes and insurance payments pre-paid (included) on your mortgage payment, so that you don’t have to pay a lump sum at the beginning of each year.
Please follow this Free Analysis Form if you would like a certified credit counselor review your home purchasing possibilities.
One of the factors that can single handedly lower your credit score significantly is having a late mortgage payment on your credit report. Even may time more than having for example a late credit card payment. You should avoid late mortgage payment under any circumstances.
If you are already falling behind on your mortgage payments, look up our how to avoid foreclosure and please call us at 1.800.296.4950 for personalized advice, or fill out our Free Analysis Form for personalized assistance.
