American Dream Homes: Important Things to Consider When Buying a Home
It is easy to be attracted to a house, most especially if you find it as the perfect place for you to live and stay with your family, but your emotions should not cloud your judgement because buying a home is a major investment that requires objective and sound reasoning. Purchasing a house may seem to be the best financial decision, having mortgage as a form of forced savings, and increasing your equity over time. When purchasing a house, you have to take into consideration the cost of the mortgage and its interest rate, as well as the property taxes, insurance, maintenance, utilities, and other fees.
Before purchasing a house, it is essential to also evaluate your capability of making an initial downpayment, the amount you are willing to spend, the possible amount your mortgage lender can offer, and then the things you can sacrifice just to buy your dream house. When it comes to mortgage, a mortgage lender can lend you up to 36% of your gross monthly income to be spent on mortgage and interest, but experts recommend less than 28% of a household income should only be spent for the mortgage to avoid financial difficulty. The initial amount of money required to purchase a house is between 5% to 20% downpayment from the selling price of a house. While there are many financing options available, many people end up winding up borrowing money to pay also the extra cost such as the closing costs (appraisal fee, fee for credit report, homeowners insurance, or prepaid expenses for property tax escrow). When looking at a potential loan, it is best to seek help from a real estate agent so you can make an informed decision, and to consider the monthly downpayment, term, and interest rate; the cap on adjustable-rate loan,;other options when dealing with interests fluctuations; and the possibility of the amount owed to increase about original loans.
Apart from the mortgage cost and interest, it is essential to consider the location, proximity to government offices, school district, position on the lot, crime rate, walkability, neighborhood, community amenities, and long-term value. Even if the house is not that beautiful or attractive, a great location will always be a good asset most especially if you have good neighbors and a caring community. You can save a lot of time, money, and effort traveling if you have the important community amenities near your house such as park, drug store, grocery store, good school, government office, church, hospitals and even your workplace. Just click here to know more about the American Dream Homes real estate agents to help you when buying your dream house today!
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