For most Americans, the value of their home is their single most important financial asset, so doesn't it make sense to proceed, as wisely as possible, when deciding which home to buy and what to do with it. your? Unless you want the happiness and bliss of this essential part of the so-called American dream (home ownership) to become a nightmare, instead of a dream, it is important , to enter the process, with your, eyes wide open, in particular, with respect to relevant and essential financial factors and considerations. With that in mind, this article will attempt, briefly, to review, review, review, and discuss 6 basic financial considerations you shouldn't ignore.
1. Full Purchase Price (including: the actual price and all associated closing costs): Obviously, the purchase price of a specific property, are essential and significant considerations! In this context, it is important to consider not only the price you are paying, but all associated closing costs. These include: closing costs and fees; and affordability, in the future.
2. Advance payment: While most consider 20% to be the standard, as much as the required amount, to deposit, but many pay, much less than that, through a variety of alternative programs / products, offered, by lending institutions. In fact, the average down payment today is, in fact, around 13%. Depending on the price of the property purchased and whether one is owning a first home or selling another (and using that product) the challenge is different, for, various people and circumstances. Additionally, it is wise to remember that while putting in less may solve one challenge, it often creates another as it means a higher monthly cost and more challenges in qualifying for a mortgage.
3. Property taxes: Depending on where you live, property taxes can become an important factor, wisely, in choosing where to buy a home. Add the monthly costs for these, to payments, for principal, interest, and other escrow items, to consider how this can impact your personal comfort zone, and the stresses associated with being in escrow. 39; home ownership!
4. Other items in receivership: Other items to consider, which are usually paid monthly, for various items in receivership, include a variety of types of insurance, taxes, and other related fees.
5. Utilities: Pay attention to a specific house, energy costs, and utilities! More energy efficient homes, often more green components, etc., means much lower monthly expenses.
6. Contingencies: Give yourself a margin of error! Be prepared for a variety of possible eventualities including: job / job / salary changes; repairs, renovations, modifications, appliances, etc.
When you buy a house and think, if you are ready and prepared, about the many financial considerations, it is more likely to make you happy and less stressed than if you don't. Are you ready to own a home?