By Josh Moore, District Manager – Northwest District, Marine Credit Union
- Down payment: How much do I have saved? – Will I be depleting all of my savings for the down payment? A good rule I like to use is that I want to keep at least a third of my money saved. (i.e. If I have $10,000 saved for a down payment, I really need to find a home that would allow me to only put $6,666 down)
- Am I going to stay in this area? – If you don’t plan on living in the area or you’re not willing to commute, you might want to look deeper into this decision. Upfront fees are spread throughout the life of a mortgage loan and nobody can predict appreciation.
- How much can I afford? – This is a loaded question everyone asks themselves when thinking of purchasing a house. You have your mortgage payment, which can include your taxes and insurance as well. However, just because this payment sounds appealing to you, please consider other expenses home ownership has, including maintenance and monthly utilities, which can be higher than they were when you were renting.
These are just a few points to review when you are thinking of purchasing. You should always consult friends, family and/or a professional mortgage consultant prior to making this final decision.