“I Can’t Afford to Buy a Home”
Many people don’t think they can afford to buy a home either because they don’t have a sizable cash down payment or they don’t believe they are in a financial situation to qualify. This is very often a misconception. There are many down payment assistance programs for first-time home buyers that can reduce the amount of cash needed. Often, the amount of typical security deposit and one month’s rent may be all you need to get your foot in the door of your first home. The Donnelly Group works with a number of lenders who can evaluate your financial profile to help determine what programs are best for you.
“How Does Buying A Home Save Money?”
The fact is that when you buy a home, every month you are paying down a debt that helps you accumulate wealth. If you buy a $250,000 home today, chances are pretty good that in 10 years, the mortgage you owe, if you consistently pay your mortgage and don’t take on any additional debt, will be less than $200,000 and you will have accumulated a substantial amount of equity in the home.
In addition, when you rent your rent payments increase year after year. Most mortgages today are fixed rate, meaning the principal and interest rate stay the same for the entire term of the loan, typically 30 years. So, instead of your rent going up every year, you’re actually saving money. In many cases, homeowners also qualify for additional tax breaks that can help save even more. Be sure to contact a local accountant for advice.
“I Move Around a Lot”
Renting a home might be your best option if you move around a lot, if you don’t plan on staying in one location for long, or don’t want the responsibility of owning a home. But, keep in mind that when you rent, you pay a rent payment that often increases and you have nothing to show for the money you pay in rent every month.
How Do I Figure Out What I Can Afford?
The experienced team at the Donnelly Group can work with you and a preferred local lender to determine your best scenario. If you’re ready to explore your options, The Donnelly Group has the tools you need, send us a message.