One of the fears that I have heard from first-time home-buyers is –
“What if I can’t afford my home payments?
This is a valid question, but should not be a fear that keeps you from looking to make your first purchase. Let me share a few reasons why this is the case.
- Paying a mortgage is like paying your rent. If you do not pay your rent, the landlord can begin the process of evicting you. It may take 30 days, but you also pay penalties. If you are buying your own home, then the mortgage company can also take legal action to retrieve the funds you promised to pay them when you signed the mortgage paperwork. This process can take a long length of time, but should not give you an idea that you can just skip payments. Essentially, most renters do not worry about paying for their rent because you expect to pay for a place to live. You should think of a mortgage the same way.
- Another area of concern is that first-timers think that a mortgage will cost much more for a home payment than it does for rent. The rental market in Cheyenne is definitely good for landlords. This means that there is no shortage of clients ready to rent the home, no matter what condition the home may be in. Having said that, renting a home can actually cost you much more than it would cost for you to begin the process of owning your own home.
- A mortgage is a better plan to invest your money each month than rent. When you speak with a good mortgage advisor like Trisha Jackson at Premier Mortgage, you will understand that part of her job is to help make sure that you can actually afford your home payments. Debt-to-income ratios are taken into account. This means that she will verify how much you make each month and what your monthly bills are. The process ensures the mortgage company that you can actually afford what you think you can afford.
- Finally, maybe you are asking the wrong question. You should be asking yourself, “Can I afford NOT to purchase a home?” Every year you wait, you are paying your hard-earned money to a landlord or a rental company. You are building no equity for yourself and your family. Every dollar you spend on a home you do not own is money that is being thrown away. Ultimately, homes are not going down in price, but will continue to increase. If you think you can’t afford payments now, wait another 4-6 years and then your regret will be that you did not start now in your search to buy a home.