Ready to Buy?
For most people, buying a home is the single largest financial and emotional transaction. There are various factors to consider.
Here are some questions to ask yourself:
- Are your finances in order? Are you managing your debt well? Have you saved enough for a down payment?
- Does your current living situation fit your needs and lifestyle? Is it time to up-size or down-size? Are you sticking around for a while? The financial costs of buying are significant, so you will want to allow some time to break even.
- How much can you spend per month? Allow for property taxes and homeowners insurance in addition to your mortgage payment. If you are looking at condominiums or town homes, expect to pay homeowner association dues.
- What are the hidden expenses? All homes require maintenance. So be sure to budget for routine maintenance as well as major repairs.
- What's happening in your real estate market? If you are renting, the trend is a larger portion of your income goes to rent. As a home owner, your housing expense should remain relatively stable. In time, as your income increases and your mortgage is paid down, your housing expense will actually decrease as a percent of your income. For most people, that is reason enough to buy.
How did you do? I will be happy to help you answer these questions.
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