Afford Mortgage


Whether you are making a lower income but want to get out of a rental situation, or are solidly middle class but would like to trade up to a larger house and lot, there are many things that you can do that will help you afford a mortgage payment.

Lifelong Renter, First Time Buyer

Most of us understand that rent money is money down the drain. The money that you pay in rent provides you with a home, but no matter how long you pay rent it will never be your home. Buying a home allows you to make that monthly payment an investment in your future, as well as providing you with a place to live.

Finding an affordable home is not usually the problem for these people. In fact, many times your mortgage payment may be the same as, or not much more than, your rent. The problem is saving up for a down payment while at the same time making those rental payments. Too often, by the time rent, utilities, and necessities are paid for, there is nothing left to save.

There are three things that you can do that can help get you into a home. Try using one, two, or all three to help you meet your goal.

  • Take a part-time job, temporarily. Of course, if you are a single parent, or have other obligations at home, this may not be feasible. If you can manage it, and take that second paycheck and put it straight into a savings account and do not touch it, you would be surprised at how quickly it adds up.

  • Guard your creditworthiness. If you have any delinquent accounts, get them caught up, and then work toward paying any debt off. This can take a great deal of self discipline, but even if you only have an extra $20 a month to pay on an account, do it.

  • Look into state and federal programs. Whether you are a veteran, a first-time homebuyer, a single parent on a limited income, or looking to buy a home in an unpopular neighborhood, there is likely to be a program that can help. These programs may allow you to buy with little or no down payment, a low interest rate, or offer other advantages that bring home buying within your grasp. Try contacting a realtor or mortgage lender to get additional information on these programs.

Moving into a Pricier Neighborhood

Many people buy a home soon after marriage, but after the birth of a child, a promotion, and/or other lifestyle changes, buyers often find themselves ready to move into a larger, more expensive home. Being able to afford the mortgage on one of these homes is always a concern, but you do have some advantages. The longer that you have lived in your current home, the more you have paid down the principal. When your current home sells, you pay off your existing loan, and then should have a pretty substantial amount of money for your down payment.

Another advantage that you have is your existing relationship with your lender. If you have always made timely payments, and are not looking at homes at the top of your price range, your mortgage lender will probably feel comfortable enough with your history that you benefit from lower interest rates, fewer points, or even a smaller required down payment.

Whether you are a first time buyer, or looking to move up in homes, affording a mortgage is a very doable goal. By seeing the numbers in black and white, and knowing your financial situation, you can eliminate much of the fear that holds some back from buying a home.

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