Small Families – Living Longer in Rental Homes in Ulster County, to Prepare for a Mortgage Later
If you’re ready to buy your first home, chances are you’ve already discovered what a nightmare it can be getting approved for a mortgage loan. With restrictions on eligible income, lender paranoia, and tighter income verification standards, getting a home loan is no longer a matter of having a good job and a paying your bills on time. It’s for this very reason many young families have changed their buying plans to involve living longer in Rental Homes in Ulster County.
Many young families have decided that while they do want to own, they can’t go about doing so the way their parents did. Instead, they are using the information about what a mortgage would cost them to save some money, while testing the waters of carrying a mortgage (without the risk). How it works is like this – a family goes to a bank, or will Visit Website, and start the pre-approval process for a home. With the bank’s help, they figure out how much they might approve for, and what the monthly payments would look like.
From there, they look into rental homes in Ulster County, and find one with a monthly rent around $200 or less than what their expected mortgage payment would be. They then change their monthly budget so that their “rent” is the full amount of what they expect to pay on their mortgage one day. The rent obviously goes to the landlord, and the rest? It goes straight into a savings account, and builds toward a down payment and future closing costs.
But it isn’t just a down payment that makes these young families’ plan so smart. It’s the experience of “practicing” on a mortgage that is the real benefit. By “practicing” making that mortgage payment each month, families can actually see what effect a mortgage payment would have on their budget. Sometimes it gives them the extra confidence that comes from knowing, for a fact, that they can easily carry a mortgage. Other times, it shows them just how little wiggle room they actually have in their budget – and that a mortgage may not be a good idea until they have a bigger income.