Buying vs. Renting for First Time Homebuyer?

Renting vs. Buying
Before you buy your first home, there are important things to do and know. Consider which option is right for you.

Know how Much you can Afford
Depending on the amount you have saved for a down payment, your mortgage payment should typically be no more than 28% of your monthly income, and your total debt shouldn’t be more than 36%. Use our affordability calculator to find out what price range might be good for you.

Maximize your Credit Score
Generally, a better credit score will help you get a better interest rate on your mortgage. And even a small improvement in your score can have an impact on your monthly payment and save you thousands of dollars over the course of your loan. Learn more about how to improve your credit score.

Save for Extra Costs
Lastly, you’ll need to have some money tucked away for extra costs beyond your monthly mortgage payment. These costs include your down payment and closing costs. A down payment of 20% or more helps you avoid PMI (Private Mortgage Insurance) and lowers your monthly payment. And closing costs are typically 3% – 5% of the total home cost.

Contact Ned Kircher for further information at 480-776-5324

 

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