Making dream of home ownership a reality
OKLAHOMA ASSOCIATION OF REALTORS COLUMN
Long before I bought my first home, I dreamed of owning my own space — having a place to call mine.
Many don’t realize how close they are to their dream of home ownership because they believe misconceptions or simply don’t know the steps to take.
One misconception is that to purchase a home, you must make a 20-percent down payment. While doing so allows the buyer to avoid paying mortgage insurance, it’s not a requirement.
In fact, depending on your credit history and the type of home you plan to purchase, the lender may require a down payment as low as 3 percent to finance your home purchase.
If you need help, be aware there are programs that provide down-payment assistance, and your purchase agreement can stipulate the sellers pay some closing costs to save on out-of-pocket costs upfront.
It’s also important to understand that even though buying a home is a hefty investment, it’s a worthwhile one. Unlike a car that will depreciate over time, buying real estate will give you a return when you are committed to taking good care of the property.
The home will not be a liquid asset like accessible funds in your bank account, but it will be a marketable asset that will increase in value over time and likely yield future profit.
When deciding on whether or not to buy a home, it’s important to consider all the factors. Beyond the initial investment, it is absolutely essential to buy within your means. If you can afford the mortgage payments, you can be confident in making the investment to purchase a home — but making a purchase decision based solely on the amount of the monthly payment is not advisable.
If you compare homes, you may realize it’s only a small increase in monthly payment to get more features that are important to you. In addition to considering the monthly payments, you need to consider the total purchase price, neighborhood safety, school district, local amenities, your commute, and other factors.
Of course, beyond the financial benefits, being a homeowner offers a chance to be a part of the neighborhood culture and contribute to the community in a meaningful way. Again, don’t buy what you can’t afford, but be sure to consider all the factors that will contribute to your lifestyle in the home.
If you’re unsure about purchasing a home or the process to do so, start with a local Realtor to walk you through the steps and answer all your questions. It’s our desire to help you make the best decision that works for you.
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