How To Afford a Home Mortgage

Taking the first step into the process of home buying to ultimately become a homeowner is a daunting task. It may seem like a foreign process if you've never been through it before and you quickly learn that buying a home is much more entitled than buying a car. There are inspections to be had, prices to be negotiated, and terms to be understood. You'll quickly learn comps aren't complimentary items. You'll be getting nothing free out of this deal. However, by the time a deal is done and you are kicking back in the first home that is truly yours, it will all be worth it. If you would like to own a home but think you can't afford it, you're thinking is all wrong. Here are five reasons why you can afford a home and why this American dream should be realized for you in the very near future.

1. Cheaper Than Rent

It's always strange to hear someone say they can't afford to buy a home but they're paying rent that is nearly twice that of a mortgage payment. With home mortgage rates consistently low right now, houses for sale should be a rare sight, yet many young people don't realize just how easily within their grasp this dream of home ownership truly is. If you're paying $1000 a month on rent, you could easily be paying $500 for a mortgage on that same property.

The real kicker is, that money going to the landlord? You'll never see it again. Even if your mortgage were $1000, that would be going toward equity that you could later tap into for another home, to make upgrades to your current home, or to take a year off work and travel around the world. That last option is not advisable, but you do what you have to do.

2. Start Repairing Your Credit

If your credit is holding you back from making the leap, there is no better time than now to start working toward repairing it. You may be just learning that your credit is your ticket through life. The longer you hold off taking care of your debts, the longer your life is going to be stagnant. Just don't hire one of those credit repair companies. Those funds are best utilized actually paying off your credit.

3. You Can Still Get a Mortgage

Even with low credit, you can still get a mortgage. There are programs out there for people just like you. After all, everyone makes mistakes, and so everyone deserves a second chance. Find a lender that works with government programs such as those offered by the FHA. Depending on your score, you could get into a home with as little as 3.5% down.

4. Cut Frivolous Spending

If you aren't currently paying rent, but are living in the basement at your parent's home, first of all, why? And second, get out of there. Unless your parents need you there, you should be looking to spread your wings so you can fly out of there. Your frivolous spending habits need to change, though. There is no doubt that if you have a job and you're living with mom or dad, you have been spending too much money on designer clothes, 10 streaming apps, your Paul Mitchell hair, pay-per-view, bath soaps and anything else high end that normal working people can't afford. It's much more fun to have your own space, and probably better for your mental health.

5. You Can't Afford Not To

You really can't afford to continue paying that rent, or living in that basement. If you're paying rent, your money is leaking like a sieve. In the basement, your sanity is doing the same. People assume that purchasing a home requires burdensome up front costs, pristine credit and thousands of dollars for monthly payments. None of those things are true. The truth is, purchasing a home is one of the most affordable things you can do for yourself in life.

Homeownership opens many doors for your financial future. If you've been debating whether to make that first step, which may be going to an open house, calling a lender, or contacting a realtor, stop debating and start doing. When you're kicking back in that new living room, you'll have not one single regret.