Buying a house is a big investment and an important purchase of which you should consider several variables. For example, make sure you know your maximum budget for a mortgage payment and try to stay as well below this limit as possible to avoid your getting into excessive debt so you can keep your bills paid. Besides checking into finding a great new neighborhood and the floor plan of your choice, here are some additional questions to ponder over as you look for a home to buy.
Does It Have Rental Potential?
Being a homeowner brings with it many responsibilities, and the largest of those is financial responsibility. When you buy a home, you usually get a 30-year mortgage, which means you can expect to pay on it for the next 30 years. It is a good idea to think about what you would do with your home if you were suddenly not able to make its payments anymore. Fortunately, when you own a home, you own an asset with the potential to earn income in the form of rent.
If you buy a home, make sure it is one that is rentable or that it can easily be rented to cover all or most of its mortgage payment. This can help you if you, for example, lose your job and have to move suddenly to get a new one. You can rent out your home to a tenant to cover your mortgage, taxes, and insurance until you can sell it. Look at the rent in your area for similar homes and compare that to your mortgage payment. So if you own a home that you can rent for $1,400 each month and your mortgage payment is $1,300, you can rent it out for pretty close to what you are paying out.
What Kind of Financing Can I Get?
Another important detail to consider is the type of financing you can get for your home purchase. There are a variety of loan programs and ways to get financing, depending on your financial situation and your credit.
Many first-time home buyers apply for a first-time home buyer's mortgage, which requires a low down payment and can provide you with a low rate interest for a period or the time of the loan. You might also look into finding a seller that will provide seller financing to help you buy a home without qualifying for a bank loan. This can be helpful if your credit is not the best. The type of financing you get can affect how much your payment is each month. Check with a mortgage broker or with your realtor to get some more details about your financing options for homes for sale.