When Should You Buy A House In Texas?

Almost every Texan’s dream is to buy their own Texas home. However, if you bought a house before you were ready, your property will make you poor and drag you down. You will end up owing more of what your property’s estimated worth is.

If you are a first home buyer Texas, timing is quite essential. After all, purchasing a house can be life-changing. So let’s get down to what everybody is asking: When is the best time to buy a Texas property? Does it even exist?

It is quite essential that you buy a house for the right reasons and when you are truly ready. So how do you know when the right time is?

Let’s answer your question.

Use Your Rent as a Guide When It Comes to Your Mortgage

Home ownership in Texas has tax benefits which allow you to afford insurance, taxes and mortgage payments. Check your current rent and multiply it by 1.33. This will provide you with an estimate on your mortgage payment. Don’t forget to factor in the homeowner’s tax benefits.

If paying rent is having a strain on your finances, you need to buy a home that will provide you with the same amount of payment as your rent. Don’t go any higher. You should know that the homeownership includes overhead expenses which your landlord is currently covering. This consists of any repairs and taxes for the property. If you have no room in your current budget for the extras, you will be quite stressed regarding your finances.

Poor or Nonexistent Credit History

Time and again, it is said that having a better credit score will help you get a lower interest rate. As such, it is quite crucial that you take the time to check your credit score and history. A poor credit history, however, can’t prevent you from having a home. If you are paying your bills on time, keep going. If not, you should start taking care of your score so when it’s time for you to buy a house, you can.

Make sure that you keep your oldest credit card still open even though you are not using it. Keep in mind that the length of time that you’ve established credit is essential. The longer your credit history, the better.

Having At Least 20% for the Down Payment

Having a 20% down payment is ideal. As such, check if you have enough money for that down. If not, it might not be the time yet for you to buy a house. However, there are still ways of acquiring that full 20% down payment. You can put down 5% down and then get two different loans for 80% and 15%. You should keep in mind that if you put down lesser than the 20%, chances are, you might be required to pay the mortgage insurance.

Take these things into consideration and check if you are capable of buying a house before you go ahead and purchase one.