5 financial needs necessary to buy a house!
Website design By BotEap.comAlthough, almost everyone realizes, it takes some sort of financial commitment, to be relevantly prepared to buy a home of your own, few, proceed, pay close attention, to everything, involved, and necessary! Most know they’ll need a down payment, which is often about 20% of the price of the home (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 their 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 attempt to briefly consider, examine, review, and discuss these, and why it is important for a homebuyer to be prepared.
Website design By BotEap.com1. 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 housing, apartment co-ops, etc., where a higher down payment may be required). To be prepared!
Website design By BotEap.com2. Various reservations: When you buy a home, you’re looking for the American Dream, but if you’re not fully prepared and ready, you risk becoming a nightmare. There are a variety of reserves, which wise homeowners have, including reserves, for: immediate repairs/renovations/upgrades/refinishing; moving expenses; appliance repair/replacement; HVAC – related exits, etc.; exterior/interior painting/maintenance; advance replacements/repairs/renews; unplanned maintenance/repair; updates etc
Website design By BotEap.com3. Personal comfort zone: Every homebuyer should/should determine for themselves their personal comfort zone, in terms of financial, home ownership needs! No one wants to add unnecessary stress etc., so the more you know, the better prepared, the less hassle and discomfort.
Website design By BotEap.com4. Total monthly payment: Many things go into one’s total monthly payment related to your house. Mortgage payments often/generally include: principal; interests; real estate taxes; and escrow items (such as insurance, etc.). Also, consider utility costs (including electricity, heating and cooling, cable, internet costs, etc.). Prepare for both regular and unforeseen expenses (such as repairs, replacements, plumbing, exterior maintenance issues, etc.)
Website design By BotEap.com5. Job Security/Personal Financial Confidence: Do you expect to stay in this area or are you not sure? How confident are you in your current job/occupation/position? Are you ready, willing and able to proceed in a financially responsible/sensible manner? Think you’re ready and fit for the financial aspects of homeownership?
Website design By BotEap.comIf one carefully and financially prepares for the anticipated and unforeseen expenses associated with home ownership, the process will be easier, less stressful, and overall happier and more fulfilling. Will you proceed wisely and preparedly?