You Can Afford a Home

    Are you thinking about becoming a homeowner? Many people believe buying a home is beyond their means, but here are some seemingly insurmountable obstacles that can easily be overcome.

    Down Payment

    Many first-time homebuyers think a down payment on a home requires a minimum of 20%; however, if you have a high credit score, you may be able to get a FHA-backed loan requiring as little as a 3% as a down payment.

    Student Loans

    Are you worried that your student loans will be a roadblock when buying a house? Reduce your monthly student loans by switching your loans to a graduated repayment plan. This loan plan will start off your payments slow and then rise every two years to accommodate a college graduate’s rising salary. Another way to keep you eligible for homeownership is loan consolidation. This will combine your principal balances together at a lower interest rate. Additionally, requesting for a longer payback period will reduce the amount you owe each month.

    Credit Score

    The credit score needed to buy a home varies. Typically, mortgage lenders want a credit score of 620 or higher. To improve your credit score, set-up automatic payments for your bills so that everything is paid on time. Pay off as much debt as possible. Check your credit score far in advance of applying for a mortgage so you have time to deal with credit issues and raise your credit score.

    Closing Cost

    Closing fees range between 3% and 6% of the mortgage. When choosing a mortgage lender, get multiple quotes, compare costs, and ask about fees. If you’ve chosen a lender, and you find another lender offering a lower rate, ask your lender to match the deal. Closing costs are negotiable and never set in stone.

    Mortgage Payments

    Mortgage payments can take a large percentage of your monthly income and leave you stressed about paying your other expenses. Negotiate your mortgage payments by extending your repayment term, refinancing your mortgage, or having your home’s tax assessment redone. Another option includes making extra payments for a year so you can see your monthly payments decreasing in the future.

    You can achieve the American dream! Give the RJ Homes team a call at 520.333.7777. RJ Homes can make homeownership a reality for your family.

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