Although almost everyone realizes that it takes some form of financial commitment, be prepared, in a relevant way, to buy a house, on your own, few, proceed, pay close attention, to everything, involved and necessary. ! Most know that you will need a down payment, which is often about 20% of the home’s price (that amount may differ, however, depending on the type and terms of the particular mortgage), but, many, they fail to realize and proactively plan for other financial-related needs. After more than 15 years, as a licensed real estate seller in New York State, I have come to firmly believe that there are at least 5 financial considerations / needs necessary to purchase a home. With that in mind, this article will briefly attempt to consider, examine, review, and discuss these and why it is important for a home buyer to be prepared.
1. Deposit: When you use a mortgage (as the vast majority of people do), the lender will require, at a minimum, a down payment. Although this is generally 20% of the purchase price, there are many other mortgages that may require less (and, at certain times, such as non-owner-occupied homes, multi-family homes, cooperative apartments, etc., an additional down payment). high, it may be necessary). To be prepared!
two. Multiple reservations: When you buy a home, you are looking for the American Dream, but if you are not fully prepared and ready, you risk turning into a nightmare. There are a variety of reservations, smart homeowners that have, including reservations, for: immediate repairs / renovations / upgrades / refinishes; moving expenses; appliance repair / replacement; HVAC related problems, etc; exterior / interior painting / maintenance; early replacements / repairs / renovations; unforeseen maintenance / repair; updates, etc.
3. Personal comfort zone: Each buyer must / must determine, for himself, his personal comfort zone, in terms of financial needs, of home ownership! Nobody wants to add unnecessary stress, etc., so the more you know and the better prepared, the less hassle and hassle!
Four. Total monthly payment: Many things go into a person’s total monthly payment related to their home. Mortgage payments often / generally include: principal; interest; real estate taxes; and escrow items (such as insurance, etc.). Also, consider your utility costs (including electricity, heating and air conditioning, cable, internet costs, etc.). Prepare for both the usual and unforeseen expenses (such as repairs, replacements, plumbing, exterior maintenance problems, etc.)
5. Job Security / Personal Financial Confidence: Are you hoping to stay in this area or not sure? How secure are you in your current job / occupation / position? Are you ready, willing and able to proceed, move forward, in a financially responsible / responsive manner? Do you think you are ready and fit for the financial aspects of owning a home?
By carefully and financially preparing for both the anticipated and unforeseen expenses related to home ownership, the process will be easier, less stressful, and overall happier and more satisfying! Will you proceed wisely and in a prepared manner?