Don’t want to keep renting but don’t have money to buy a house?



Buying a home is not as simple as buying anything else because you will need to plan carefully and make sure you are prepared to make this big investment. Here are some steps to help you know if you’re ready to finance your first home.


  1. Look at your net income, how many dependents you have, and your debts. Some lending firms can let you borrow over 90 percent on your home value. As a general rule, make sure your home payments do not exceed 30% of what you actually make monthly after taxes and after your other debts. Don’t forget to calculate the extra costs, usually taxes and insurance are financed on top of the mortgage, so expect the actual monthly payment to be higher than you see on mortgage calculators. Also, as a homeowner you will be responsible for all maintenance and repair. Do you have the funds to cover a busted pipe or broken heater in the dead of winter, or other major repairs that can and will come up?
  2.  If you do not have a regular income you can look into the possibility of low documentation loans. This kind of loan is designed for those without a consistent income or without a lot of proof of their income. The deposit and interest rates will be higher than for standard loans because the lender is taking a bigger risk
  3. Consider how much you have saved for the down payment. If you don’t have the money to make a big deposit, there are also banks and lenders that may also give you a low equity loan with a deposit that is less than one-fifth of your home value. This may entail a slightly higher interest on paying back your loan. Also remember the smaller the down payment, the bigger the monthly mortgage.
  4. Don’t forget that there are extra expenses involved in financing your first home. This may include legal fees, insurance, an evaluator’s fee, or removal costs. Find out what other extra fees you may be paying when financing your first home so you won’t be caught unawares later on.
  5. Check your credit rating. Your credit will figure highly into your ability to qualify for a mortgage. If your credit is not good, you will have to work harder to get approved for the loan, or you may be better off waiting while you work on getting your credit rating up to par.

Please feel free to contact us for more details on this subject.

Boneli Real Estate & Management Group, LLC your Tampa Bay real estate consultant!