How to be Able to Own Your Home Instead of Renting
The percentage of families in the US who owns the house they are living in is 63%, while the rest of 37% of families are still renting the place they live in from their landlords. It may be true that nothing is wrong in renting if that is what a person can only afford, but many people also believe that renting is a simple way of throwing away money instead of owning the property eventually by paying it every month and not just put the money in the pocket of your landlord.
The average cost of a two bedroom family home is around $800 per month in rental. With this amount, the renter is actually throwing money into the pocket of the landlord at an average of $9,600 every year. Some people view this as plenty of money wasted each month, and thus many families would look into buying a property of their own instead of renting the property.
On the other hand, you should know that it is not going to be easy in transitioning from renting to buying situation. In order to offer families with a smoother transition from renting to owning their homes, there are some guidelines to follow so they can take the leap of owning their properties.
Saving for the property you want to own is the first step for you to be able to buy your property. The first step to be in the property ladder is to give a deposit. Normally, your deposit is around ten percent of the value of the home you want to buy. And so, if the price range of the home you are checking out is around $300,000, you would be needing $30,000 as your deposit. And of course, the lower the amount of the place you are looking at, the lower your deposit will be. In order to make savings for the plan smooth and easy for the whole family, it is advisable to put a family budget and have the commitment of everybody to stick to it. After paying your rent and other bills, put whatever you can in your savings, and sooner you will reach what you are aiming for.
After settling your deposit, you can proceed in checking out home lending companies that offer support and advice on how a mortgage can be obtained. Be aware that if you have bad credit rating and do not have good income, getting a mortgage may be difficult. But do not let the situation put you off because there are other companies that you can try again.
The next step to acquire your property, as soon as you have made sure of the financial side , is to go on house hunting, but at the same time you need not rush in handing over your notice to your landlord.