Although, almost everyone, realizes, some kind of financial commitment is needed, to be prepared, in a relevant way, to buy a home of your own, few, proceed, pay close attention, to everything, involved and necessary! Most know that they will need a down payment, which is often about 20% of the price of the house (however, that amount can differ, depending on the type and terms of the particular mortgage), but many They don’t realize and proactively plan for other financial 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 homebuyer 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 typically 20% of the purchase price, there are many other mortgages, which may require less (and, at certain times, such as multi-family homes, non-owner-occupied homes, cooperative apartments, etc.) where a higher down payment may be required). To be prepared!
two. Various reservations: When you buy a home, you’re looking for the American Dream, but if you’re not fully prepared and ready, it risks becoming a nightmare. There are a variety of reserves, which wise homeowners have, including reserves, for: immediate repairs/renovations/improvements/refinishing; moving expenses; appliance repair/replacement; HVAC – related problems, etc.; exterior/interior painting/maintenance; replacements/repairs/anticipated renewals; unscheduled maintenance/repair; updates etc
3. Personal comfort zone: Each buyer should/should determine for themselves their personal comfort zone, in terms of financial needs, of home ownership! No one wants to add unnecessary stress etc, so the more you know, the better prepared, the less hassle and discomfort.
Four. Total monthly payment: Many things go into one’s total monthly payment related to their home. Mortgage payments often/usually include: principal; interests; real estate taxes; and escrow items (such as insurance, etc.). Also, consider utility costs (including electricity, heating and air conditioning, cable, Internet costs, etc.). Prepare for both regular and unforeseen expenses (such as repairs, replacements, plumbing, exterior maintenance issues, etc.)
5. Job Security/Personal Financial Confidence: Do you expect to stay in this area or are you unsure? How secure are you in your current job/occupation/position? Are you ready, willing and able to proceed in a financially responsible/sensitive manner? Think you’re ready and fit for the financial aspects of home ownership?
If one financially and carefully prepares for the anticipated and unexpected expenses associated with home ownership, the process will be easier, less stressful, and generally happier and more fulfilling. Will you proceed wisely and in a prepared manner?