Considerations for First-Time HomebuyersBy First IB Mortgage Team on August 19, 2014
Undeniably, renting offers a lot of flexibility and puts the landlord on the hook for maintenance and upkeep. Of course, when you grow tired of sharing walls with neighbors, or spending money each month on rent without seeing any return on your investment, buying a home starts to have some appeal.
First Internet Bank’s Rent vs. Buy calculator can help you determine if buying a home is an affordable option.
First IB mortgage experts recommend you prepare a budget. Knowing where your money goes and how much you can allocate toward a monthly mortgage payment will allow you to make the best purchase decision. If you’re a current customer of First Internet Bank, check out FinanceWorks, a free budgeting and personal financial management service available through our online banking system.
A budget will also help you identify ways to save for a down payment. Most loan programs require you to pay at least part of your home’s sale price upfront. Down payments range from 0% (for military personnel) to 20% and up. A First IB mortgage expert can help you sort through the down payment options available to you.
It is important that you understand the responsibility of home ownership and all the costs associated with it. Your mortgage payment is just one of the costs. You will also need to maintain a homeowner’s insurance policy, and we encourage homeowners to set aside some savings for unexpected repairs. You have the responsibility to your lender, your family and yourself to maintain your home and keep it in a good and safe state of repair. You may also wish to talk to your Realtor about a homeowner’s warranty.