How to Make First-Time Home Ownership Affordable
Thursday, August 6, 2020, 6:00 PM | Leave Comment
If you are a first time home buyer, no doubt you are excited about the prospects of purchasing a home.
The American dream is composed of being a homeowner.
If you are looking to buy a home and you want to make an affordable purchase, there are some helpful tips that you do well to consider.
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Don’t Get a Mortgage that You Can’t Afford
Do not be tempted by what you may be eligible for. When you first go to the financial institution in order to get your mortgage, it is possible that you will be eligible for a significant amount. The problem is that their calculations should not necessarily be yours.
In order to not be house poor, you only want your mortgage and your escrow to be about 25% of your take home pay. Once you start getting beyond that figure, you may have to make the choice of getting groceries or paying the mortgage. You want to get a house that is in your price range, so calculate the amount that you can afford before you go out and get a mortgage.
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Find Out the Real Amount that You will Pay
Many first time homebuyers make the mistake of not taking all of their monthly expenses into account when they buy a home. With a home, you have to pay more than just the bank. You have to pay for homeowners insurance and you also have to pay for property taxes. Keep in mind that property taxes never go away. If you stop paying them, a real estate tax attorney may have to get involved in order to sort things out. Since that is the case.
Get information about how much taxes, insurance and utilities will really cost each month. After putting all the figures together, you can know what type of mortgage you can afford, what type of neighborhood is reasonable for you and how much you are able to pay in utilities.
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Be Willing to Make Adjustments
When it comes to your first home, try to be flexible. This does not mean that you can not get the house that you want, it just means that you need to be reasonable. If the house that you want is in a great area that is too expensive , you either have to keep looking or increase your income. If you love some things about a home but not everything, you may have to settle with just a few of the things that you want.
There is no reason for you to go broke trying to buy a home. By saving your funds and making some wise decisions before you get your mortgage, your first time home buying experience can be delightful.
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