buy Provo homes

                      Home  |  About Provo UT  |  Search Provo Real Estate |  Provo Utah Real Estate Market    

Buying a Provo Home

Buying a Provo Utah Home or Renting

There are several good reasons why quite a number of people should not buy a home. Below are a few reasons that show if you are one of those people who should not buy but rather rent a home. Buying or Renting a Home is a big decision.

Bad Credit Report

What’s your credit score? If Fair Isaac & Company or FICO gave you a credit score under 620, you may not be able to get good interest rate. Interest rates depend on your FICO score and a low score may result in a high interest rate.

The higher FICO score you have the better interest rate you will get on your loan. If you have bad credit you will need to work on repairing it. You have to try to fix your bad credit first before applying for a loan. Fixing your credit can take months or years. Be familiar with your FICO score and what is needed to improve it. A free credit report can be obtained online if you look around. You should be familiar with you and your spouses credit report before hiring a Realtor and starting to shop for a home. If you are planning on buying a Provo Utah home you need to repair your credit first.

buying a provo home

Renting a Home in Provo Utah: Beware of High Debt Ratios

The two particular ratios that are being considered by lenders loaning on homes in Provo, Utah are: front-end and back-end ratios. The front end ratio consists of the mortgage payment, taxes and insurance which will be divided by your salary monthly.

On the other hand, the back end ratio is the sum of your PITI payment and your monthly debt payment and then to be divided by your salary. If it goes up to 50% debt ratio, that is already very high. It is important for you to know that a high debt ratio means that you may not be able to qualify for a loan. If you want to buy a home you may need to be careful before buying a brand new car and accruing more debt. Debt is a bad thing. It is wise to keep out of debt.

Buying a Provo Utah Home: Maintenance

Every home needs to be maintained and not everyone is willing to deal with this kind of maintenance. In fact, those who are buying homes for the very first time can’t afford to pay an expert or a professional to fix the things that need to be done. You need to allocate at least 5% of the total purchase price in order to cover for repairs and maintenance when you are buying a new home.  Believe it or not it costs money to keep a home in good repair. If you are use to renting you enjoyed calling the landlord every time something broke. When you own your own home you are the one to do the repairs. It is a good idea to try to do your own repairs if you can. Calling a service tech every time you need to change a light bulb can get expensive.

Renting a Home in Provo Costs Significantly Less

If buying a Provo home would mean that you have to pay a mortgage payment that’s more than the amount of your monthly rent, it might not be practical to push through buying a house in Provo UT.  Carefully consider whether to buy or rent a home. As of the first quarter of 2012 it is significantly cheaper to buy a home and get a mortgage compared to renting a home in Provo. In, fact I just sold a family a home in Provo and their payment on a 1700 sq/ft finished home was around $850.  If they were to rent this same home it would be $1,200. Here are a few other websites to visit:

Buy a home in Orem Utah
Buy a home in Pleasant Grove Utah  

Provo utah homes zillow realtor  Provo utah short sales  Provo utah broker  search Provo utah listings  Provo ut homes  Provo utah real estate                                                                       Provo Utah Real Estate   Provo Utah Short Sales   Search Utah Homes   Provo Utah Realtor  
                       Provo Utah Short Sales  |  Provo Utah Bank Foreclosures  |  Buy a Provo Utah Home  

                                                    Sell a Provo Utah Home  |  Provo Utah Realtor  
Copyright 2014 Developed and Published by Paul Teasdale. | All Rights reserved | Provo Utah Homes Privacy Policy | 1100+ Homes Sold  |  Site Map