Buying A Home You Can Afford

When buying a home, it is important that every home buyer understands the costs involved in owning a home.  This should be the first part of every home buying plan because this part will enable you to determine whether or not you really need to buy a home or continue paying the rent.

Buying a home requires you to pay for the down payment, homeowners insurance, closing costs, moving costs, repair costs, purchasing major appliances or furniture, furnishings, landscape and other accessories, and the list can go on.  So, have you ever thought of these things?  It’s easy to say especially if you think you have the money to buy a home, but it will be difficult once you write it down on a piece of paper.  Thoughts is different from figures, right?

How would you know if you can afford a home right now?
1. Determine the value of the property.
2. Compare different mortgage loans and their required payments.
3. Ask for an estimate of your closing costs, taxes, inspections, title insurance, prepaid loan interest, financing costs, and other costs that you need to pay in order to own a home.
4. In this part, you need to have the estimated figure of the down payment as well as the closing costs.  The amount you’l have is the estimated money that you need to have right off the bat.
5. How are you going to move in to your new home?  Are you going to hire a moving company, is it going to be a DIY, or mixed?
6. Don’t forget to ask your real estate agent about property taxes.
7. A home inspection company will help you determine which area needs to be repaired or maintained if you’re not buying a new house.  They can also give you an estimated cost for the repairs needed.

Don’t be afraid of numbers because numbers don’t lie.  It’s better to be surprised with the figures rather than buying a home and struggle with paying for it and eventually end up in foreclosure.

Comments are closed.