Becoming a Homeowner
We bought our first home almost 5 years ago. It is a townhome and was a nice stepping stone for us as we had only lived in apartments for the first 4 1/2 years of our marriage. We’ve loved this home, have made friends and like the area, but we recently decided that it was time to move on. After having our 3rd baby, we realized that we were starting to outgrow our home. I think we’re ready to be done sharing walls, have a garage, and a bigger back yard.
The process of looking for a home has been stressful and exciting at the same time. Our budget is much bigger than it was 5 years ago, simply because we are doing so much better financially. We looked at quite a few homes that we thought were just ok and contemplated putting an offer in on one. Our realtor found a home in an area that we weren’t necessarily looking at and asked if we would go look at it. Upon pulling up, I was immediately in love with the outside. Once we went inside, hubby and I knew it was absolutely everything that we were looking for. It was built about 20 years ago so it needs a little bit of updating, but it seemed to be perfect from the layout to the yard. We got our pre approval in place and decided to put in an offer on the home. We are still waiting to hear back, so I’m not going to post pictures of it just yet, but I’m really hopeful. It might not work out, and then we will be on the hunt again.
If it does work out, there are a lot of things to think about, mortgage insurance being one of them. Where we don’t have a 20% to put down on a home, we would be required to have mortgage insurance. It’s actually a very smart move because it protects you and the lender in the event that you are unable to pay your mortgage. We’ve had some tight months a few years back where we weren’t sure how we were going to make ends meet, so we’ve definitely felt the stress of financial burden. If you aren’t a homeowner, you might be wondering what mortgage insurance actually is. Genworth outlines mortgage insurance below:
Mortgage insurance can help you buy a home with less than a 20% down payment — and as little as 3% down. It provides financial protection to lenders and investors if a homebuyer defaults on a mortgage loan.
Mortgage Insurance doesn’t protect you in the case of death, that would be where Life Insurance would come into play, and you can learn more about that by clicking the image below or by visiting this article: The 3 Insurance Policies You Need.
For now, we sit and wait to see if our offer is accepted and then will look more into mortgage insurance as we will be required to have it.
Have you bought a home before and do you carry mortgage insurance? If not, will you carry it if you do buy a home eventually?