SCHUTT LAW FIRM, P.A.
Phone: 239.540.7007
Blog
04/30/2021
Owning a home is a goal that many people have, but it's important that you don't rush into it. You first want to be sure now is the right time to dive into homeownership. To decide if you're ready, use these tips from Schutt Law.

Wait Until You're Ready to Buy a Home

Buying a home is a serious commitment, so you have to be sure you're ready to take this step. To help you decide if this is the right move for you right now, use this helpful information.

If you're buying a new home, you're not protected if you don't have title insurance in Fort Myers. To learn more about title insurance, contact the experts at Schutt Law. Give them a call at (239) 540-7007 to get your questions answered.

Are You Ready to Make a Downpayment?

Before you dive headfirst into buying a home, your first want to be sure you have enough saved up to make a downpayment. A downpayment will usually require a cash payment equal to 20% of the home's price. If you don't have this, this doesn't mean you can't buy a home. You may still be able to purchase property, but you will have to also purchase private mortgage insurance. This is needed to protect your mortgage lender in case you default on your payments. It can add up quite a bit, leading you to pay more than what you expected in a year for the home. Keep in mind that you also shouldn't drain your savings to make a downpayment. You need to have a separate savings account for this so that you can still have your emergency fund intact and other savings to cover moving costs.

Do You Have Debt?

Having debts can negatively affect your financial standing. It may not sound like a huge deal, but your credit score can suffer as a result. If your credit score can stand to improve, then you may not be getting great loan offers. You may get a lower offer or offers with higher interest rates, neither of which is ideal. Rather than accepting a deal that isn't quite what you wanted, work on paying off your debts. Take some time to pay off anything from student loans to credit cards so that you can improve your credit score. Hold off on making any large purchases for a while and get rid of credit cards you don't need. Once you see your credit score improve, then you can try getting a better loan offer.

Is Your Income Stable?

Next, having a stable income is a must if you want to buy a home. If you recently started a new job or don't feel like you have a secure job, don't jump into homeownership yet. If you lose your job, paying a monthly mortgage can get tough and very stressful. Instead, wait until you're sure your position is secure. You don't want to default on your loans for a number of reasons, so don't take this leap until you have a stable income and job.

Be sure to purchase title insurance in Fort Myers to protect your investment. To learn all about the importance of title insurance, contact the friendly experts at Schutt Law at (239) 540-7007.

Are You Ready to Stay Put?

When you use a mortgage lender to buy a home, you usually sign a contract that lasts years. Most home loans can take 15 to 30 years to pay off, so it should be considered a serious commitment. With that said, don't commit to this if you're not even sure if you want to live in the same town for at least the next five years. If you do decide to move in a year, you can face serious financial losses. Not only did you take out a hefty loan, but you likely also paid quite a bit for other costs associated with buying a home. To avoid these losses, be honest about where you see yourself in the future.

Are You Making This Decision?

Finally, this is a huge decision that requires a lot of thinking. Don't let others pressure you into buying a home just because you can afford it or because you think this is the next step you should take as an adult. You can continue to rent until you're absolutely sure you want to buy a home.

Protect your home investment with title insurance in Fort Myers. The title insurance experts at Schutt Law can answer all the questions you may have. Give them a call at (239) 540-7007 to get your questions answered.