Tips for Purchasing Your Stephenville Dream House

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Nice living roomYou and your family have fallen in love with the architecture and raw charisma that went into an Erath County home. You scream with absolute joy at the open-concept kitchen, the elegant trim along the ceiling, and the beautifully crafted windows in the dining room. You’re ready to make a down payment on your dream home and move in.

However, determining the actual costs associated with owning a home after you made the commitment can be a headache waiting to happen. A quick tour of the home—even if you love the place—does not mean you should sign a contract just yet. Before you start talking to a real estate agent, follow these simple steps to decide if you’re ready to purchase a home.

Firstly, familiarize yourself with the local real estate market and determine how much other homes are selling for in your area. Calculate an average selling price and then decide if you can realistically afford to pay off that amount with your current salary minus expenses. Generally speaking, your monthly mortgage payment should be equal to or less than 25% of your gross monthly income.

Next, make sure you have enough money to make the down payment. Depending on the type of mortgage you select, you can expect to pay anywhere between three and 20 percent of the total value of your new home. If your down payment is less than twenty percent, you may also need to have private mortgage insurance (PMI), which incurs additional costs. Also keep in mind these fees must be prepaid along with your down payment.

There are also the monthly costs associated with owning a home including utility bills, general maintenance, and homeowner’s insurance. If you’re planning on borrowing money to foot the initial costs, make sure you know your credit rating. Your credit rating determines how much banks are willing to loan you and is impacted by recent large purchases and whether you make payments on time. If you’re currently leasing a new vehicle, it will also have an effect on your credit rating depending on how much you owe.

If you’re in the market for Stephenville homes, please contact us. We’d love to share with you all of the reasons this is such a wonderful place to call home.

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“Eric & Jamie Hayden were great to work with. They are very responsive and know the area well. They have a great team around them that made the process of selling very easy. We were out of state during the sale and they went above and beyond to assist in coordinating with us. Definitely recommend!”