Get Ready To Buy That Home !: 5 Personal Financial Considerations

For most of us, an important ingredient of the American Dream is owning a home of our own. However, especially with the high price / cost of housing, in many areas of this country, a smart buyer begins this journey as well prepared as possible and in order to do so, he must pay close attention to many related. factors! This article will focus on one of them, which is understanding some of the personal financial considerations and reducing the potential stresses of this transaction process. As a licensed real estate seller in New York State for more than 15 years, I have witnessed some of the dangers of not being as prepared as one should be. With that in mind, this article will briefly attempt to consider, examine, review, and discuss 5 personal financial considerations that have a major impact on goal achievement.

1. Deposit: Although you can buy a home, with a mortgage, with less than usual Deposit, best terms, rates, etc. generally require a 20% down payment for an owner-occupied property. However, with today’s real estate price, this one-fifth often creates a major hurdle. For example, this means that a $ 500,000 home would require at least $ 100,000, etc. Without the combination of a personal plan and discipline, etc., how can this be accomplished?

two. Bookings: The lender often requires multiple reserves to make sure one is qualified for a mortgage. Also, it makes little sense to get rich in a house, but cash – troubledand unprepared for many of the eventualities of owning a home. Some of these reserves should include: preparation for repairs; possible renewals; temporary loss of income; property tax increases; change of employment and / or work situation; and unexpected / unforeseen expenses / expenses.

3. Credit capacity: The better the credit, the easier the process will be. You can get a copy of your credit reports in person to make sure they’re accurate and positive, or you can hire a professional to help you start your home search in advance. Take steps to improve your overall credit worthiness!

Four. What can you pay comfortably ?: Focus on buying a home that both meets your needs, as well as how you feel comfortable, in terms of paying the associated costs, both immediately and on an ongoing basis. Know and understand your personal comfort zone, so owning a home is a pleasure, rather than a potential nightmare.

5. Contingencies / emergency funds: Prepare for contingencies, financially and emotionally, because there are usually some obstacles and challenges involved along the way! Before you buy, make sure you have a plan, not only for the obvious expenses, but also for the many contingencies.

Are you ready, to be prepared, to buy, that house, of your dreams? Be a smart shopper, to get the most out of this process.

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