As a renter you know the obvious steps like creating a budget or saving up for that down payment, but take these 5 steps into consideration before moving into your dream home.
The real price of homeownership.
As a renter, we are use to paying a one time rental fee that covers us on our monthly housing payment. As a homeowner, there are four main factors that go into our payment: principal, interest, taxes, and insurance.
Principal, as we know, pays into the loan balance each month. While the interest, is the fee for borrowing the money.
Taxes are essentially the property taxes, which is based on the area you live.
Insurance, which is chosen by you and usually agreed upon by the lender, assures lenders that the home will be covered in case of any type of disasters.
If you decide that you want to go the condo route, the additional cost of homeowner's association fee (HOA) come into play. Which covers routine maintenance to the general common area of the condo neighborhood.
Homeowner tax benefits.
The mortgage interest and property taxes reduce your taxable income and are deductible when you file your tax return. These are huge helpers when it comes to lowering the cost of homeownership.
Study the Buying vs Renting math.
Although you focus on the principal,interest, taxes, and insurance to a rental payment, make sure you take a look at the tax benefits for homeownership costs and rent costs.
Find the right mortgage for your budget & timeline.
A lot of us don't have the 20% to put down on a home, but there are mortgages that require as little as 3% down. However, anything less than 20% requires you pay for mortgage insurance, which is a considerable percent to your loan amount, which isn't even taxable.
It's all about the credit score.
Your credit score is key when it comes to get the best mortgage with the lowest rates. Lenders are always looking for the dependable on time payer. So more credit accounts are better to establish a good credit history.
Regardless of your situation Suncoast Property Management has any and all options for when you are ready to buy a home, or maybe continue leasing. Get in touch with us to find out more and see our available homes!