If your time with your current lease is almost up, you can dive right into the search for another rental space, or you can explore the advantages to buying a home. There are benefits to making the transition to home ownership, but it can be an intimidating to make the leap from renting. Even if you feel that the time is right, you can have questions about the mortgage market and what kind of terms will come with yours.
FHL Texas has experience with people in different life stages who are looking for different things from the real estate world. In addition to helping people move from one owned property to another, we assist first-time buyers who are ready to stop renting. There are market trends that can reassure you that this is the right time to make a purchase. There are also advantages to owning a home for your long-term financial health that can make your property purchase beneficial at any time!
Are You Ready To Stop Renting And Own The Space Where You Live?
A rental property can give you a sense of home, but you are limited in the claim you can make on it. These spaces tend to restrict your options when it comes to matters of decorating and renovating, and you have to keep negotiating your terms as lease agreements end. They also offer less when it comes to matters of building credit, growing your net worth, and generally building on your financial health. With that in mind, many people are eager to transition from renting to owning, but doing so can feel intimidating. It can be hard to assess what is happening with the real estate market. You can also find it difficult to know how that will affect matters like mortgage terms and interest rates as a first-time buyer.
What First-Time Homebuyers Should Know
A first-time homebuyer can feel like they have a natural disadvantage when it comes to entering the market, as they lack a property to sell in order to help pay for their new house. You should know that both government-backed FHA loans and conventional loans are available with smaller down payments. Your FHA loan can be secured with a payment as low as 3.5%, while conventional loans are available after a down payment of as little as 3%.
FHL Texas can actually make your experience as a first-timer buyer easier by offering guidance, giving you important information on the housing market, and even by providing a no-cost pre-approval. That pre-approval can speed up the process of making a successful offer, as it provides assurances about your ability to secure the loan you need for your purchase.
Should You Let Market Factors Affect Your Decision To Buy?
Market trends in the fall pointed to advantages for home buyers. Because of this, you and others may be more excited to try and move away from renting. Does this mean your window for making a purchase is limited? It can certainly help to know what is happening with interest rates and home prices if you are thinking about where you want to live. With that said, even a less than ideal time to buy can be a good time to explore what properties are on the market. This is because you can find an unexpected opportunity to secure a lovely space, and because delaying means waiting longer to start seeing long-term value from owning a home.
Long-Term Economic Benefits To Owning A Home
Paying your mortgage can help you in ways that paying your rent cannot. Both are obviously important for keeping your roof over your head, but your mortgage payments also help you by growing your equity. What this means is that you steadily grow your net worth by taking on more ownership of the property. This helps you build credit, which enables you to qualify for other forms of financial support and take advantage of different opportunities. It can also help you as you look toward retirement. There are different ways to use the equity you have built over time. One option, once you reach the eligible age, is a reverse mortgage. This is a type of loan that lets you borrow against your equity and receive a welcome payout, one that does not require monthly payments.
Refinancing Can Help You Improve Your Finances While You Remain In Your Home
Your monthly obligations as a renter can change when you sign a new lease. As rent prices continue to rise, you can benefit from having a stable mortgage because you are able to lock in the price of your monthly payments. That being said, there is a way for homeowners to change what they pay for their property. By refinancing, you can replace your current loan with a new one that is more advantageous. This move can help you benefit from better interest rates, and it can even be a means of taking cash based on the equity that you have already accumulated.
Talk To FHL Texas About Your Interest In Buying A Home!
After years of renting, you can be eager to buy a home, but you can also find the prospect intimidating. Are you missing important information about real estate and home ownership? Is this really the right time to make a purchase? Will you even qualify for a mortgage? The sooner you reach out to FHL Texas, the sooner you can learn more about the process and benefits to buying. We have experience helping people move from apartment rentals to outright home ownership, and we can help you understand how to secure the property you want as well as the long-term advantages to making this transition. For more information on buying a home and how we can help you with the process of securing your mortgage, call FHL Texas today at 1-800-990-LEND (5363).