How I Turned my Dream of Home Ownership into a Financial Reality #CapitalOneHome
Are you a homeowner or in the market to purchase a home in the future? I remember when I first wanted to purchase a home, the process was very overwhelming.
Purchasing a home is nearly everyone’s ultimate dream. Owning a piece of something to call your own, decorate it to your style, raising a family and growing old, all under the same roof, that is what my dream was as a younger woman. Unfortunately for me, I made some foolish mistakes in my 20’s that cost my credit dearly. After finally cleaning up my credit, I was ready to embark on the journey to finally own a home of my very own.
The first step is knowing where to start
I always had the desire and was willing and eager to purchase a home, but I really didn’t know where to start. That is when I turned to a company I was already familiar with, Capital One.
Capital One’s goal is assist first-time homebuyers understanding the process and how it works. Capital One has launched a new online learning center that features the know-how you will need to become the savviest homeowner in your neighborhood.
The next step is research and becoming informed
Buying a home is an important process, but certainly not a simple one – Capital One’s new online resource lays the groundwork with a glossary of terms you should know, an overview of the loans available and more. From the very first step – planning, to the final step – financing, Capital One Home Loans can give you everything you need, but the most important key is knowledge.
Here are some Tips for First-Time Homebuyers
- One of the first steps is figuring out how much home you can afford. Start by sticking to the right price range. A rule of thumb is to look at houses that are 2.5 times your annual salary.
- Ideally, your monthly housing payment shouldn’t be more than 28 percent of your gross household monthly income.
- Use an online mortgage calculator to help figure out what you can afford.
- Your financial history is important too. Lenders look at income, assets, job history, credit score, total debt and how much you’re willing to put down as a down payment.
- The traditional estimate for a down payment is 20 percent of the purchase price of the house, which can lower your monthly payments and avoid mortgage insurance better than a lower down payment.
- Remember that closing costs can add to the amount you need to close your loan and take possession of your new home. Look them over carefully, because they can vary from one lender to another.
- Mortgages come in all shapes and sizes, and which one you choose depends on a lot of variables, including your budget, the amount you can afford to put down, the interest you’ll pay and the term length. All mortgages have pros and cons, but starting with at least a top-line understanding of what’s available is important as you save for this major purchase.
The final step is finding that dream home and affordable financing
After I gained the knowledge needed and felt well-informed on what I needed to do, I was ready to start house-hunting. After finding that perfect home for my family, the offer was made. Just a short time later, I am a homeowner for the first time in my life. I am 42, I own my home and feel great about how I was able to do this on my own, with time, diligence and most importantly – knowledge.
I love that no matter what stage we are in life, you can still fulfill your dream of owning a home of your very own. With a free, reliable resource like Capital One, everyone can start the journey to owning a home that is affordable and all your own.
If you want more information on home buying, be sure to review Capital One’s Tips for First-Time Homebuyers on the Home Loans Online Neighborhood.
I was selected for this opportunity as a member of Clever Girls and the content and opinions expressed here are all my own.
