A Home

Buying a home is one of the biggest purchases that most people will make, so no doubt it can be an intimidating process. However, despite fixing that emergency leak in the weehours of the morning, homeownership is very rewarding.

Homeownership is the best way to build wealth. Owning your own place has substantial social benefits, including higher educational achievement, civic participation and health benefits. Sounds exciting, right? But when is the right time to make the leap from renting to homeownership? Are you ready to become a homeowner?

Here are a few tips to help you better understand when is a good time to make the transition from writing that rent check to someone else to building equity in your future.

Think Long Term

One of the advantages of renting is flexibility. It is simply easier to move at the end of your contract than trying to sell your house, but understand this convenience comes at a price. If you know that you will need to move shortly because of a job or family change, then renting is probably the right option. However, if you are looking to put down roots, then consider homeownership. Where do you plan to be in two, five and ten years? Do you plan on having children? How is the school district? How is the neighborhood? What is the projected growth in the area? Can you envision you and your family in the home in the future?

Identify a Location

In real estate, it is all about location and what is important to you. Do you want acreage out in the country? Or would you like to live in town? Do you want something close to work? Do you want something close to the interstate with easy access to Knoxville and Chattanooga? It is also a good idea to look at area schools, property tax rates, crime statistics and proposed growth plans.

Budget for Home-Related Expenses

First-time homebuyers are encouraged to save at least 20 percent of the home's purchase cost to avoid paying private mortgage insurance. However, there are options for first-time homebuyers that include paying less than 20% down and even options for 0% down with no PMI. While you wiJI need a nest egg for the down payment, you also need to think about the expenses associated with homeownership. Be sure to plan for property taxes, home insurance, utilities, maintenance and possible homeowner association fees. These will vary depending on the size of your home. Also, be sure to set aside funds for emergency repairs because they will pop up - regardless of the home's age.

Strengthen Your Credit Score

Understand your credit score. In general, the higher the credit score, the lower the interest rate. In short, a good credit score will save you money. Work to improve your credit score by paying bills on time and eliminating credit card balances. Visit www.annualcreditreport.com to get a free copy of your credit report from each bureau.

Get Prequalified

Contact a mortgage lender to get prequalified before beginning to look at properties to better understand what you can afford. Be prepared to supply your residential history, employment and income history, personal assets and persona] debts. The prequalified process will help you understand your debt-to-income ratio and ultimately create a better home buying experience.

Understand the Mortgage Market

You don't need to be an expert about the mortgage market, but having a strong foundational understanding about the homebuying process can be helpful. The NeighborWorks America website is a good resource for first-time home buyers. Also, look in your area for homeownership classes. Chattanooga Neighborhood Enterprise hosts an annual Money School every spring with sessions dedicated to homeownership.

Be Determined and Informed

The supply of homes on the market is lower this season. Know that you will need to move fast to get your dream home, but don't cut corners. Making decisions without fully reviewing all the facts could be disastrous, especially when it comes to the home inspection.

Sign Up for Home Alerts

Keep a pulse on the market by signing up to receive home alerts from your realtor or real estate search engines. This is a great way to understand the market without having to scour through real estate searches every night. I t also helps you better understand all the listings that are available.

Visit the Neighborhood

To get a good feel of the neighborhood, visit it at various times throughout the day What is traffic like during the morning commute? Are people active in the afternoon? Is it important to you that there are other families? If there is a neighborhood listserv, see if you can sign up in advance to better gauge the neighborhood. Talk to others who live in the area and ask what they like about the community. You need to not only love your home, but your neighborhood as well.

Request a Home Inspection

It is easy to fall in love with what seems to be the perfect house, but know that every house has pitfalls. That's why it is so important to get a home inspection by a licensed home inspector The inspector's job is to look for hidden issues with the home. Issues could include things like mold, termites, foundation problems or a bad roof. Be sure to allocate time to attend the home inspection. Good home inspectors will take the time to walk you through the process and explain what they found. The cost of the inspection could save you a lot of money later.

These ten tips will help you in your journey to homeownership.

For more information about the prequalification and mortgage process, contact TVFCU Mortgage Originators, Jennifer Cheatham at 423-634-3662, or Wendee Gibson at 423-634-3674