Posted by Ashley Zoerner on
If you’ve been a renter or boarder all your life or haven't quite found the time to move out of your parents’ house, perhaps you’ve pondered homeownership—and how you’ll know when you’re ready to make the leap. Deciding to buy a house of your own can be scary. After all, it’s a big decision that comes with a lot of responsibility. However, being a homeowner has its perks—and we’re not just talking about the fact that you can paint your wall whatever crazy color you’d like.
In our latest blog post, we’ll discuss some of the reasons why you may want to consider saying bye-bye to rent and hello to a home of your own!
Rent Hikes Are Getting Old
Always wondering if or when your rent is going to increase can be stressful. Nationally, the average rent increased by 36% in the past decade. There are many reasons for this, including the value of land going up, more luxury rentals taking over the market, and a job market that causes demand to skyrocket. Between 2010 and 2019, renters paid around $4.5 trillion to live in someone else’s space.
When you become a homeowner, the unpredictability of what your monthly payments will be year after year is a thing of the past. You’ll work with a mortgage professional to determine how much you can afford, based on several factors so that there are no surprises. Best of all, you’ll be investing in yourself each month instead of handing your money over to a landlord.
Favorable Interest Rates
Having a good interest rate is important when purchasing a home. Your rate will depend on several factors, including how the bond market is performing. Recently, the mortgage industry has seen historically low interest rates and it’s predicted that this will continue. In fact, The Fed is forecasting that rates will remain near zero at least through 2023.
If you don’t quite understand how this affects you, you’re not alone. Basically, your mortgage interest rate is an extra amount that you pay to your lender in addition to paying off the amount that you've borrowed. When rates are low, it can mean substantial monthly savings in your pocket.
You Have Good Credit
The concept of credit can be confusing, but it’s an important factor when it comes to being approved for a home loan. A good credit score tells lenders that you’re fiscally responsible and are likely to pay back your home loan. If you’re considered a low-risk investment, the mortgage company is more likely to offer you more favorable terms. If you’ve worked to pay down debt and build your credit, let it work for you through homeownership.
You’ve Got Job Security
Having a steady job is a huge win when it comes to qualifying for a mortgage. One of the first steps in the mortgage process is verifying employment and income. It goes without saying that you’ll have to prove how you’ll repay your loan, which would be tough to do if you’re unemployed. In fact, some lenders are wary of those who have recently started a new job. Typically, a mortgage lender verifies your last two years of employment and income when considering your application. If you’ve been at the same job for a while, then take advantage of your security to prove you have what it takes to obtain a mortgage.
You’re Ready to Put Down Roots
Some people think that when you buy a home, you’re committing to stay in one spot forever. This is not the case. In fact, in 2018 the average homeowner only lived in their home for 13 years. Buying a home doesn't mean you have your whole life planned already. It does mean having the opportunity to settle into a place and be a part of your community for as long as it makes sense to you.
The non-financial benefits of owning a home vary for everyone but include feeling a sense of belonging in your neighborhood and having the freedom to customize your space how you see fit.
The best way to determine if you’re ready to become a homeowner is by speaking to a qualified mortgage professional. At Silverton Mortgage, our team makes it a point to look at your complete financial situation to determine which program is best for you. We understand that not all borrowers are the same. You need options that are as unique as you are. Contact a Silverton Mortgage loan originator today and let’s start a conversation!