Things To Keep In Mind When Buying A Home
Buying a home is to most people a significant life event and achievement. And even though homeownership may feel as if it’s sucking the financial life out of you at first, the perks of owning your own home are too many to ignore.
Home ownership can even help you accomplish more life goal – for example:
- Buying a home should happen at such a point in your life that by the time you reach your 60s, your home is either paid off, or your monthly mortgage payment minimal. A low monthly housing obligation can go a long way towards helping you retire comfortably.
- Home ownership can help you buy/start your own business. Banks are more likely to lend you money against a mortgage than by way of an unsecured loan. You may even be able to run your small business from the comfort of your own home.
Although real estate ownership is different from most other types of investments, it remains an investment well worth your hard-earned cash.
From a financial and affordability point of view, you should keep the following in mind when looking to buy your own home:
- Budget for “checking it out” fees. No property should be purchased without a proper inspection having been done beforehand. Quality inspectors don’t work for free, which is why it’s important to work their fee into your initial budget.
- The actual cost of the mortgage loan. Mortgage loans can attract all sorts of miscellaneous costs – including application fees, valuator fees, credit report fees, and even amounts payable in “up front” interest. Be sure to factor all of these into your financial new-home-ownership plan of action.
- Property insurance. This one’s a potential biggie. Whenever you buy (and mortgage) a home, your bank will require some form of financial protection against things like fire, water damage, etc. Monthly property insurance costs should therefore be worked into your monthly budget.
- The cost of the actual move. Moving costs can literally run into thousands of dollars, and you don’t want to spend all your casino movilenlinea Mexico winnings funding your move. Do your research, get quotes and hire a professional mover who can (and probably will!) save you a whole lot of time, effort, and loss, in the long run.
- Agents’ commission. Real estate agents are the people who facilitate the buying and selling of homes. They typically require as payment a set amount from both the seller and the buyer.
The Most Important Question
Every potential homeowner should first decide how much it is they can afford to spend on buying a home and on paying the monthly mortgage. The mere fact that a bank would be willing to lend you a specific amount of money doesn’t necessarily mean you’ll be able to afford paying that amount back to the lender. It should – but it doesn’t.
The best way to go about the business of affordability is to be honest with yourself regarding what you’re able part with each month. A home should never control or hamper the financial future of its owner. Also remember to factor in possible future interest-rate fluctuations as these will inadvertently create ups and downs in future mortgage payments.