Skip to main content

How to Stop Renting and Become a First-Time Homebuyer

Key Takeaways:

  • Renting doesnā€™t help build a future
  • Homeownership can be accessible
  • Contact Linda Craft Team Realtors for more on being a first-time homebuyer

Many renters discover a universal truthā€”renting can often feel like it lacks long-term benefits. However, each monthly rent payment potentially reduces a landlordā€™s mortgage while increasing their home equity. This revelation may inspire some to transition from renters to first-time homebuyers. If youā€™re contemplating this life-changing decision, now is an opportune time to consider buying a Triangle area home.

Home purchase rates are currently favorable, and the appeal of escaping ever-increasing rental rates motivates many first-time buyers. Ready to join this progressive march towards homeownership? Linda Craft Team Realtors is here to guide you through each step of the home-buying process. Hereā€™s a simple guide to get you started on your homeownership journey.

Identify Your Ideal Location

map with pinpoints

Do you enjoy your current Triangle area neighborhood? If you do, donā€™t assume that you canā€™t afford to buy in the same area simply because rental rates may be rising. In many cases, owning a home can be more affordable than renting, potentially allowing you to consider areas previously thought to be beyond your reach.

Once youā€™ve identified your preferred locales, let Linda Craft Team Realtors know your chosen zip codes and specific preferences. Weā€™ll compile a list of suitable properties for your personal viewing.

Examine Your Finances

Before embarking on your homeownership journey, take a comprehensive look at your financial situation. Here are some key steps:

  • Review your credit report and report any inaccuracies
  • Calculate your debts
  • Evaluate your savings and future saving capacity

Lenders consider your financial health when deciding on mortgage approval. Can you afford the mortgage payment and additional costs comfortably? Keeping a debt-to-income ratio of less than 40% is generally advisable, as it widens your opportunities.

Assemble Necessary Documents

banking statements

While reviewing your finances, gather these important documents for potential lenders:

  • W-2 and 1099 forms
  • Monthly bank statements
  • Asset statements
  • 401(k), 403(b), mutual funds, stocks, bonds, and IRAs
  • Last two tax returns
  • Landlord reference

Choose the Right Lender

Securing a lender is a crucial step that should be undertaken early in the process. A lender can accurately determine what you can afford and offer valuable advice on improving your financial profile and selecting the best mortgage plan. Some lenders also offer specific incentives for first-time homebuyers.

If you need recommendations for lenders in the Triangle area, we can provide you with a list. Contact Linda Craft Team Realtors, and weā€™ll provide you with a list of lenders that may suit your needs.

Time Your Purchase Perfectly

handshake over home purchase

Even when transitioning to homeownership, remember to fulfill the terms of your current lease. If it requires a 30-day notice of non-renewal, try to time your purchase so that your lease ends around the time you close on your new home. If the timing doesnā€™t align, consider discussing a month-to-month rental option with your landlord.

Embrace the Excitement of Homeownership

Stepping into the role of a first-time homebuyer is a thrilling milestone, and weā€™re delighted to be part of your journey. If youā€™ve considered buying a Triangle area home, now is the time to act. Follow this guide and reach out to Linda Craft Team Realtors for expert assistance in navigating the rewarding adventure of homeownership.

Leave a Reply