Unless you are living with your parents rent-free, you are paying a mortgage - either yours or your landlord’s. Entrepreneur Magazine, a premier source for small business, explained this month in their article, “12 Practical Steps to Getting Rich”:
“While renting on a temporary basis isn't terrible, you should most certainly own the roof over your head if you're serious about your finances. It won't make you rich overnight, but by renting, you're paying someone else's mortgage. In effect, you're making someone else rich.”
Christina Boyle, Senior Vice President and head of the Single-Family Sales & Relationship Management organization at Freddie Mac, explains another benefit of securing a mortgage vs. paying rent:
“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”
Purchasing a home is usually the best move for most families, not just any house will do. Fresh Look takes pride in guiding buyers toward a purchase that will gain equity and appreciation over the years, offer more than one exit opportunity, and not put our clients at financial risk in the meantime.
1. Purchase a home below your means.
2. Look for equity growth opportunities.
Being approved for a $650,000 mortgage DOES NOT mean you are required to spend all $650,000 on your home. You and your broker need to take a (Fresh) look at how this will influence your monthly expenses and long term plans. If this is your first home, most of our clients are looking to establish a strong financial foundation, not burden themselves with hefty payments and few options to exit.
Next, your purchase should offer you the opportunity to force some appreciation or be located in an area reasonable expected to increase in value. We do not want our clients purchasing the best house in the best neighborhood at the top of the market. Instead, our clients look for growing areas, opportunities to improve a property, and / or at the very least, time their purchase with natural rise and fall of the market.
Your Fresh Broker can help guide you to areas to consider while you determine your other buying criteria. Download our free guide for a complete explanation of setting criteria, researching areas, and an outline of all the necessary steps to move to your first closing.
The Complete Guide to Buying a House
Buying a home requires multiple steps and choices. We strongly feel there is a "right" way to approach home ownership, so we created a guide, Compete Guide to Buying a House." It’s free and filled with our best advice on the topic.
Click here to learn more about Buying a Home, the Fresh Way.