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. It may be true that nothing is wrong in renting if that is what a person can only afford, but many people also believe that renting is a simple way of throwing away money instead of owning the property eventually by paying it every month and not just put the money in the pocket of your landlord.
A rental of an average two bedroom family house costs about $800 rental per month. With this amount, the renter is actually throwing money into the pocket of the landlord at an average of $9,600 every year. Some people view this as plenty of money wasted each month, and thus many families would look into buying a property of their own instead of renting the property.
On the other hand, you should know that it is not going to be easy in transitioning from renting to buying situation. Therefore, offered below are some pointers to ease one’s transition from renting to buying if the person would like to go into owning a property.
The number one tip that you should consider if you want to own your home is to save, save and save for it. 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. And so, if the price range of the home you are checking out is around $300,000, you would be needing $30,000 as your deposit. In other words, if you choose a cheaper place, you will need also a smaller deposit. It is thus important to make your savings easy by putting a family budget and have everybody sticks to it. Realize that the whole savings effort will take time, but after putting whatever you can after paying your rent and other bills, you will eventually reach your objective.
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. Be aware that if you have bad credit rating and do not have good income, getting a mortgage may be difficult. If you are not successful the first time around, do not be discourage with it but instead try other companies.
When you have secured the financial aspect of your goal, your next step is to search for the house you like, but you need not rush your handing in of your notice to vacate your rent.