Deciding If You’re Ready for Your First Mortgage
Owning a home for the first time can be a huge step for you to take, which is why it is important to avoid biting off more than you can chew. If you think it is time to become a homeowner, you will first need to consider your finances and determine what kind of home mortgage loan in O’Fallon you can afford. Read on for a few tips on deciding if you are ready for your first mortgage.
Determining Comfortable Payments
Before you begin looking for a home, you must figure out what you can afford. Your total debt, including housing expenses, should come to less than half of your total income. Spending beyond your means and moving into an oversized house is a risky endeavor that can make it difficult for you to keep the lights on. Be logical and responsible in considering your preexisting debt and your ability to make your payments on time.
Making Down Payments
If you are the type of person who is financially secure and responsible, you may want to put down as large of a down payment as you can. A larger down payment comes with a number of advantages , including smaller mortgage payments and a greater degree of flexibility in choosing a lender. If you are financially comfortable enough to put down a significant down payment, you may be ready for your first mortgage.
Planning for the Future
Financial stability is not the only factor to consider when deciding if you are ready for a mortgage. Think about your future and where you plan to end up. If you do not see yourself living in the same spot for the next decade, it may not be the right time in your life to seek your first mortgage.
Are you deciding if you are ready for your first mortgage? Call GCS Credit Union at (618) 797-7993. We are happy to discuss home mortgage loans in the O’Fallon area, and we can also set you up with online banking and bill paying. Please visit our website if you are interested in learning more about our member-only credit union.