What You Need To Know Before You Shop For A House
Home ownership and its related responsibilities and costs can be a whole new situation for you when you have rented a home in the past. When you own your own home, you can't rely upon a property manager or landlord to handle problems and repairs for you, and when you are going to start shopping for a home you need to consider all the new responsibilities that come with it. Here are some recommended topics you should think about to prepare you for home buying and home ownership.
If You Can Rent Out the House
Once you buy a house, you will need to have the financial stability to pay for the monthly mortgage payment and its related costs. If you get into a situation in which you can no longer afford to pay for the home and its costs on your own, you might consider moving out and finding a tenant to live in and pay you rent or finding a couple of roommates to help share your living expenses. Renting out your house is a great way to help cover the costs, whether you choose to live in the home or not while you do so.
But before you can consider this option you will need to find out if the home you plan to buy will allow tenants or a rental situation. For example, check with the city to make sure there are no zoning restrictions preventing you from doing so. You will also need to check to find out if you need a business license to rent out your home. And you should also make sure the mortgage you qualify for does not prohibit your renting out the property.
How Much House You Can Afford
Another recommendation to start thinking about before you start shopping for a home is to figure out how much you can afford. Just as you don't want to search for a rental house that is beyond your ability to repay, you don't want to buy a house that stretches your budget beyond its means. For example, make a list of all your monthly expenses to find out how much you are paying for items, such as vehicle expenses, childcare, groceries, and utilities. After you have determined how much you pay out each month in regular expenses you can see what is left over for a mortgage responsibility.
You should talk to a mortgage broker about getting qualified for a home mortgage. If your credit is not the best, you can still qualify for a mortgage based on your income and employment. Your mortgage broker has access to a variety of lending programs and can match you to one that fits your situation and credit. No matter if you have derogatory information on your credit, meet with a local mortgage broker to find out what is available for you in terms of no credit financing.