Are You Financially Ready To Own A Home? Here Are Some Things To Consider

Real estate can be unpredictable. Learn tips and tricks you can use to keep your finances in check throughout the buying or selling process.

Are You Financially Ready To Own A Home? Here Are Some Things To Consider

7 May 2016
 Categories: Real Estate, Blog

In an era of low interest rates and a hot housing market, it might seem like the perfect time to buy a house. For those who have never owned a home before, the thought of home ownership can be exciting. When you are considering purchasing your first home, you need to consider a few things before you take the leap, for example, are you really ready financially to own a home?

Down Payment

Getting approved for a mortgage isn't the only hurdle you will have to face when buying your first home. That can be tricky in and of itself. Do you make enough money and are you a good risk for the bank to take a chance on? There is also the fact of having enough money saved for a substantial down payment.

It may be possible to get approval for a mortgage with a smaller down payment, but the higher you can make it, the more likely you will be approved. It will also lower your payments every month. You also need to think if you will have any money left over once the down payment is paid. You shouldn't leave yourself with no savings when buying a home.

Closing Costs

For new home buyers who have no experience purchasing a new home, they may not realize that the down payment isn't the only expense in buying the house. You must also have enough money for the closing costs. These will include lawyer's fees, insurance, taxes and land transfer taxes (should your town or city have them.)

Monthly Mortgage Payments Plus Other Expenses

When you rent many apartments, utilities are included in the rental price. When you buy a home, you not only need enough money for the monthly mortgage payments, but you need enough to cover insurance, utilities, property taxes and furniture.

You need to have funds to cover your food, transportation costs and if you own a townhouse or condo that requires maintenance fees - these cover landscaping and snow removal and in some cases your utilities, you need to have those too. At the same time, you should have enough left over to put into a savings account and/or emergency fund in the event something unexpected happens such as an illness or job loss.

Landscaping and Maintenance of Property

One thing you need to consider is if you have the funds to pay for landscaping of your lawn including grass cutting, weeding and if you wish, to have a garden. You also need enough money to pay for the upkeep and maintenance of the home. This includes fixing leaking problems, fence repair and general wear and tear of the property.

To learn more, contact a company like Woods Bros Realty

About Me
Talking About Real Estate Finances

Welcome to my website about real estate finances. My name is Reina. I would like to talk to you all about the financial aspect of buying, selling and renting real estate. I will share tips and tricks you can use to keep your finances in check, even when the market feels unstable or you have to dip into your savings for yet another repair. I will also discuss the pros and cons of hiring a property management company to assist you in the renting process. I hope you will follow along and learn all you can about managing your real estate finances. Thanks for visiting.