Are you renting? Are you paying someone else’s mortgage? If I could show you that you could purchase a home for the same price you are paying in rent would you want to know about it?
Take for example that you are paying rent of $1000 a month (which is really low in the Dallas area). That equates to a loan amount of approximately $125,000. Using current interest rates. Double that to rent of $2000 and you can afford a loan amount of $250,000.
That includes your total payment, principal, interest, taxes and insurance. Many lenders will quote only principal and interest of only $634 making it sound too good to be true. That is not the full payment. Be sure you get the full story!
There are a few hurdles to cross…
- You need to check your credit with a good lender. Ask your friends for a referral or get one from your Realtor. You need a least a score of 620 to have a problem free loan. Some quote 580 but that is a hard loan to get through the process.
- You need to have saved 3.5% to use as a down payment. Using the example of a loan amount of $125,000 this would be $4375. Add in closing cost and you will need approximately $9000 to buy a home. You can receive gift for some of those cost or ask the seller to contribute some of it.
So if you thought you would never be able to afford a home…think again!