E&Y Insurance offers homeowner insurance to all our customers, ensuring that your biggest purchase is safe and secure. But, before stepping into the homeownership world, here are a few financial aspects we encourage you to consider:
- Budgeting: The ability to budget is an acquired skill, and chances are you haven’t ever had to budget on such a large level before. Knowing where your money is coming from and where it is going each month, is the key to money management success.
- Debt Control: Keep in mind that a mortgage is debt. But, before acquiring this new debt, make sure your existing debt is in check. Any debt that has high-interest should be your first priority to knock down. Don’t assume that having debt will stop you from buying a home, just make sure that any payouts are factored into what you can potentially afford.
- Landlord Free: While you’re ready take control of your living situation, landlords have gotten you out of sticky situations in the past, and took the financial toll. If something goes wrong in your home, remember that you are the one who has to address the issue. Make sure you’re ready to take on this new responsibility before jumping into a new home.
- Emergency Funds: When problems do arise, whether in your home or daily life, it is important to always have an emergency fund. Whether you become ill, or your basement is flooding, always set aside as much as you can for these unexpected occurrences.
- Reliable Income: A mortgage is a long-term expense that shouldn’t be taken lightly. To make sure that you can afford this bill for the next 20 years, it is important to consider your work history. With a stable income, and at least 1-2 years of consistent employment, you will potentially be in a better position to buy a home. However, if you are unsure about your employment position and standing, make sure to put this high on your list of things to alleviate.
- Credit Score: Most companies that handle mortgages have a minimal credit score requirement for any new homebuyer. A lower credit score may mean a higher interest-rate, and more money out of your pocket, over the duration of the mortgage. Before looking into purchasing a home, make sure your credit score is at a good standing.
- Down Payment: The more amount of money you can put down on your home, the lower your interest on your mortgage will be. Set aside a few thousand dollars to go towards the down payment of your home.
Talk To An Expert Insurance Agent About Your Homeowners Insurance Policy
Purchasing a home is a serious undertaking. Hopefully, you have gone through this list and feel more confident about your ability to purchase a home. If not, it’s important to make sure you are as ready as possible, before jumping into these new waters.
For more information on homeownership, homeowners insurance, condo insurance, and many more, call E&Y Insurance Agents today! (248) 362-1313
