At one time or another, we’ve probably all considered taking that step from renter to owner and locking in our monthly housing costs for the long-term. So, when is it a good idea? The answer isn’t so simple.
Typically, buyers need at least 5% (sometimes more) of the home’s total purchase price to be approved for a mortgage.
The obvious solution is to save up a down payment so that you can become eligible for loans with smaller percentages (and, therefore, smaller required upfront payments). With enough saved, you will be ready to buy a house in Cookeville.
Save Today to Buy Later
Another way to handle down payment expenses is by saving gradually over time. While it may take longer to accumulate a large sum, you can avoid making a big investment and, therefore, better protect yourself from a financial shock.
Whatever your annual income, that number needs to be backed up by at least two times that amount in a diverse savings portfolio with investments such as stocks and bonds as well as cash.
Buying a Home: More Than Just Money
The fact is, becoming a homeowner comes with long-term commitment. You need to be ready for this, not just financially but emotionally as well.
When you are ready to buy a house in Cookeville, plan ahead and prepare. A potential buyer would do well to take time out of their busy schedules to research the benefits, drawbacks, and responsibilities that come along with it.
