Home ownership is a goal that many have and work for years planning, saving, and improving their credit to accomplish it. Buying a single family home can be a long process, but with the right strategies it can be simpler and easier to achieve. Here are some tips to help you get into a house without putting a great deal of stress and all your savings into it.
Look For Financially-Friendly Financing
There are many types of mortgage loans available on the market today, each with their own terms, application criteria, and interest rates. You can look for a low fixed rate or an adjustable rate to fit better into your circumstances, as the type of mortgage you apply and qualify for can help ease the financial burden your new mortgage payment brings to you.
You can even look for a mortgage that requires monthly payments that go toward interest only, which can be helpful when your monthly budget is tight and you don't have a great deal of extra cash to put into your mortgage. This option is usually one that you follow up in several years to refinance into a different mortgage program. With home ownership, you can refinance when your home's equity and the market interest rates allow.
Talk to a mortgage lender about the types of loans available to fit your situation and your needs. For example, if you qualify for a VA loan, you can buy a house without having to put a down payment on the purchase. Most mortgages require you to put some amount of down payment, such as an FHA loan that only requires a 3.5 percent down payment versus a traditional 20 percent down payment. However, you may also want to check into a USDA mortgage that has no down payment requirements like the VA loan, but there can be other requirements, so check into these.
Consider a Rental Suite
Another option when you are looking to buy a house is to consider renting out part of the property to bring in some income. This income can reduce your mortgage payment responsibility.
Look at a home that has a basement with a separate entrance, or an apartment above the garage. Or, you may consider buying a duplex property. You can live in one side of the property and rent out the other side as an apartment.
But keep in mind if your renter moves out and you have not found a new renter, you will be responsible for the entire mortgage. So, you might want to put away a little money each month into a savings account to help you in the event this occurs.