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. Everybody wants to have what he or she can call his or her home, and buingy a house is a major financial decision that can provide personal benefits, property taxes regarded as deductible as a form of forced savings, and increasing a person’s equity. 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.
When planning to purchase a house, it is necessary to assess the amount the mortgage lender can lend you, the amount you can afford to spend, the things you can sacrifice just to buy your dream house, and the downpayment you can afford. 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. Aside from the downpayment which is 5% to 20% of the total sale price of a home, it is also crucial to have enough money for the closing costs, any home repairs, moving costs, and other charges and fees. Many homeowners wind up borrowing money when purchasing a house because of not foreseeing these extra charges like closing costs consisting of homeowners insurance, appraisal fee, the fee for credit report, 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. It is always good to have a park, drug store, grocery store, good school, church, and hospital nearby your house so you can save on fuel, time, and effort traveling. Click more to get t know about San Diego dream homes today!