Posts from July 16th, 2024
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Your Path to Homeownership: Five Essential Steps
Wouldn't it be nice to stop paying rent and finally own a home? It may seem like a pipe dream, but with some planning, it can be an achievable goal. What do you have to do to move into one of the many Plymouth homes for sale? Here are five essential steps on the path to homeownership.
- Check Your Finances
Before you can buy a home, you first need to ensure you can afford it. However, the requirements aren't as rigorous as you might think. The average down payment for first-time homebuyers is only 8%. For a $300,000 home, this means you would need to put aside $24,000. Additionally, you must provide proof of a stable job with steady income for the past two years, have a credit score of at least 620, and maintain a debt-to-income ratio under 40%. If you don't meet these criteria, don't worry. You can still qualify for a federally-backed FHA loan, which requires a down payment of only 3.5% with a credit score of 580. Even with a credit score as low as 500, you can obtain an FHA loan with a 10% down payment.