For most of us, an important ingredient of the American Dream is owning a home. 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 over 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. Initial payment: Although you can buy a home, with a mortgage, with less than usual initial paymentThe best – terms, rates, etc., generally require a 20% down payment, for an owner-occupied property. However, with today’s real estate price, a 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?
2. 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. Or, personally obtain a copy of your credit reports, to make sure they are accurate and positive, or hire a professional to help you begin 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 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.
