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With rent increase being the primary motivator for most moves, you may be wondering if it’s time to buy a home. Here are some key considerations for renters considering homeownership.

Credit Health: To determine the risk associated with approving the loan, the lender will examine your credit history. You should review your credit before they do by getting a free copy from

Debt Load: Carrying debt not only costs you in interest charges but can hurt your ability to get a mortgage. Lenders use a simple debt-to-income (DTI) calculation to figure loan affordability: your minimum required debt payments compared to your gross income. Many lenders prefer DTIs of less than 36 percent.

Homeownership Expenses: After you move into your home, you’ll likely have new or increased expenses that didn’t exist when you were renting. In addition to repairs, you may also encounter:

Private Mortgage Insurance (PMI) – Paid to insure the mortgage if a loan default occurs. It typically costs between 0.5 to 1% of the loan amount.

Homeowners Association (HOA) fees – Paid by residents in a neighborhood to cover the costs of maintaining amenities and landscaping.

Utilities and Other Services – Are utilities, cable, and other services included in your monthly rental rate? You pay for them separately as a homeowner.

If you’d like your next move to be into a new home, contact Hughes Federal Credit Union today at 520-794-8341 to schedule a free pre-qualification meeting. Visit to learn more.

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