How to be Able to Own Your Home Instead of Renting
US statistics revealed that 63% of the country’s families own their homes while 37% are still renting their homes from landlords. Many people look at renting as a simple way of throwing away one’s money even if there is nothing wrong in renting, and this is because they believe that you are just putting your money into the pocket of your landlord thus gaining nothing, instead of paying to be able to purchase the property.
The average cost of a two bedroom family home is around $800 per month in rental. With this amount, the renter is actually throwing money into the pocket of the landlord at an average of $9,600 every year. Because some families realize that the way is a big amount of waste of money every month, thus they are serious to stop renting and instead buy a property of their own.
However, families have to take note that the condition of from renting to buying can be challenging. With that precaution in mind, here are some tips to follow to help families transition themselves from renters to owners, that will make the situation a little smoother once they want to take the opportunity of owning their homes.
The first point of consideration to take for a person to own a property is to save and save for this dream. Placing a deposit is the first chance to be owning a property. Generally, when you look at a property, you will be giving a deposit of around ten percent of the property. Thus, a place you are interested that costs around $300,000 will make you pay a deposit of $30,000. It goes to say that the cheaper the home you are eyeing at, the smaller amount you would have to prepare as your deposit. In order to make savings for the plan smooth and easy for the whole family, it is advisable to put a family budget and have the commitment of everybody to stick to it. After paying your rent and other bills, put whatever you can in your savings, and sooner you will reach what you are aiming for.
When you have your deposit in place, your next step is to look into home lending companies which offer terms and advice on how to get a mortgage. Getting a mortgage may be hard to get especially if you have a bad credit and do not have enough income. But do not let the situation put you off because there are other companies that you can try again.
If you are sure of the financial preparation of your goal to own a home, your next move is to go on a house hunt, without necessarily submitting your notice to your landlord.