Buying A Home, Is It Right For You?
Is Buying a home right for you? It will most likely be one of the most important decisions you'll make and knowing if or when it's right for you can be key to your financial future. For some, buying a home can make financial sense in their twenties or as empty-nesters and anywhere in-between.
Buying a home or deciding if home ownership is right for you is not entirely about your ability to pay. With home ownership comes responsibility. And that means you, the homeowner are responsible for maintenance, repairs, taxes, insurance and lets not forget the mortgage repayment! If a pipe breaks you either have to make the repair yourself or call the plumber...you no longer have the landlord as a source to call...you are the landlord! Because you can afford to purchase a home does not mean that you should...with home ownership comes responsibility.
Consider these points to help with your decision to purchase a home.
Do you have school debt? Personal loans? Credit card debt? If so you may need to work on your financial picture before you take on the added responsibility and debt of home ownership.
How much have you saved for a down payment? While some programs like Rural Development or VA may allow you into a home with 100% financing, many properties or buyers don't fit into those categories and there will still be closing costs to pay depending on how an offer is structured. If you and the home you wish to purchase qualify for FHA financing and the home is priced at $100,000 your FHA required down payment will be $3,500 with some programs allowing you to put down less. However, there are still closing costs, taxes and insurance. Once in your new home you may need to purchase furniture, or make repairs, paint or upgrades.
With home ownership comes those monthly payments that you may not have had to pay when renting. Homeowners insurance, sewer & water, garbage pick up, utility bills and possibly Association Dues. You will also have to budget savings for future repairs. A good idea is to have at least the amount of your homeowners insurance deductible saved.
Another important factor to consider is how long do you intend on living in the house? If the possibility exists that you'll only be in the house for a year or two a home purchase may not be your best option. Generally you should plan to be in your home for five years or so to recoup closings costs and other costs associated with the purchase.
Ready to purchase a home?
I've given you several things to consider before you purchase a home, but if you can successfully address these points and feel comfortable that a home purchase is a viable option you may well be ready for home ownership and I can help with that or give you pointers if you're close.
Original content published at....http://nicktpappas.com/?p=3788
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