Mercer Savings BankMercer Savings Bank

  • Home
  • Personal
    • Mobile Banking
    • CardValet
    • Online Banking
    • Mortgage Loans
    • Personal Loans
    • Auto Loans
    • Checking
    • Savings
    • Rates
    • Perks
  • Business
    • Commercial Loans
    • Business Banking
  • Resources
    • Blog
    • Mortgage 101 Guide
    • Online Banking Guide
    • Credit Card Application
    • ATM/Debit Card Application
    • Kids Cents
    • Free Credit Report
    • Lost/Stolen Wallet Help
    • Order More Checks
  • About
    • Locations
    • Community
  • Contact
  • Login

Are You Ready to Buy a Home?

by Mercer Savings Bank / Monday, 02 November 2015 / Published in First-Time Homebuyer

first-time-homebuyers-300x194Your parents did it. Your friends are doing it. But how do you know if you’re ready to buy a home? The decision to become a homeowner is a personal one that must be based on your life situation and finances. Ask yourself these six questions to determine if you’re real estate-ready.

1. Can I afford it?

Homeownership brings with it many new expenses. Beyond your mortgage, you’ll be paying for insurance, utilities and taxes, not to mention maintenance costs and perhaps homeowner’s association fees. If you don’t already have a budget, start one. It will help you manage your money, your spending and help you understand how much you can afford for a home.

2. Do I have money for a down payment?

Most conventional lenders require a down payment of 5 percent to 20 percent of the home’s price. The U.S. Census Bureau reports the median price of new homes sold in March 2014 was $290,000; 20 percent of that amount is $58,000. Less than 20 percent down will require that you take out private mortgage insurance (PMI), which protects the lender against default. PMI rates vary, but monthly premiums can range from $30 to $70 for every $100,000 borrowed. VA loans, available to consumers who have served or are presently serving in the U.S. military, require no down payment. Additionally, low-income borrowers with credit scores of at least 580 may qualify for an FHA loan (insured by the Federal Housing Administration) with a down payment of 3.5 percent.

3. Do I have a reliable source of income?

If there are murmurs of layoffs at your company or you’re thinking you might want to quit your job, where will your mortgage payment come from? Make sure you have a steady source of income.

4. How’s my credit?

Everyone has a credit score, also known as a FICO score (Fair Isaac & Company), which can range from 300 to 850. If your credit score is below 620, you’ll likely have a tough time getting a loan. If you do obtain a loan, it will probably require a higher down payment and a higher interest rate. If your credit score isn’t great, you should take some time to repair your credit and raise your credit score.

5. Am I planning to stay put for the next three to five years?

Real estate transaction costs are high enough that, unless you’re in a thriving real estate market, you’ll likely lose money if you don’t stay in your home for at least three to five years. Research your break even point, which is the amount of time that buying makes more sense than renting.

6. Am I ready for some DIY projects?

Owning a home means maintenance, such as mowing the lawn or making minor repairs. Do you have the time, skills and interest to maintain the property? Or, can you afford to hire someone to handle these tasks?

Summary

Once you have examined your financial health and decided you are ready for home-ownership, take the time to choose your advisers wisely and enjoy the hunt.

Are you ready to sell your home and need help finding the path to your new one? Call 877.672.4543 to speak with a mortgage loan officer, fill out our online mortgage application or visit a Mercer Savings Bank location near you today.

This article originally posted on, http://www.zillow.com/blog/are-you-ready-to-buy-a-home-152962/

  • Tweet

About Mercer Savings Bank

What you can read next

Important Information You Need To Uncover When Buying Your First Home
Qualifying for a Mortgage Loan
Need a Loan? Now’s the Time to Hit Up Small Banks

You must be logged in to post a comment.

Recent Posts

  • Giving Mission Spotlight: Kingdom Harvest Ministries

    Mercer Savings Bank is proud to support Kingdom...
  • Shop Safely This Holiday Season: A Common-Sense Guide

    Doing some shopping this holiday season (who is...
  • Giving Mission Spotlight: Fort Recovery Community Foundation

    Mercer Savings Bank is proud to announce Novemb...
  • Here’s Every Benefit You Get as a Mercer Savings Bank Customer

    It’s important for us to take care of our custo...
  • Giving Mission Spotlight: Our Home Family Resource Center

    We’re pleased to announce that Our Home Family ...

Categories

  • Bank Service
  • Business Checking
  • First-Time Homebuyer
  • Giving Mission
  • Identity Theft Alerts
  • Miscellaneous
  • Mortgages
  • News & Events
  • Online Banking
  • Online Safety
  • Saving Tips
  • Selling Home
  • Taxes
  • Uncategorized

Archives

  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013

Celina (Market Street)

217 West Market Street
Celina, Ohio 45822
Phone: 419.586.5159

Celina (Irmscher Boulevard)

1100 Irmscher Boulevard
Celina, Ohio 45822
Phone: 419.586.5158

Fort Recovery

120 North Wayne Street
Ft. Recovery, Ohio 45846
Phone: 419.375.4149

Greenville

125 East Main St.
Greenville, Ohio 45331
Phone: 937.548.9049

 

  • Online Banking Login
  • National Mortgage Licensing
  • Disclaimers
  • Privacy Policy

2019 © Mercer Savings Bank   |   Site Design by Marketing Essentials, LLC

TOP