The commitment of buying and owning a home.
The American Dream is to own your own home. Buying and owning a home is a big commitment and The Lawhead Team would like you to know the commitments involved with owning your own home.
Unless you plan to make your home a rental property, plan to live in or own the home for at least 7-10 years. Think of buying your home as a long term commitment.
Buying a home will be one of the biggest purchases in your life and you want to make sure your purchase matches your lifestyle goals. Here are some questions to keep in mind:
- Do you plan on starting your family here? Make sure there are enough bedrooms for the children you plan to have.
- If you have a dog now or plan to get one, make sure your home has an adequate yard to make your dog happy. It is usually a good idea to have a fence. If you find a home with a fence already put in, this will be more money you will save in the long run.
- Do you mind having a yard to maintain? If you aren’t ready to commit to yard maintenance, a condo may be ore your style.
- How close is your home located to your work? Keep in mind the cost of gas getting to and from work when looking for your home.
- When looking for a home, write down your “must have” list. What is important to you? A nice kitchen? Large garage? Pool?
- What type of surroundings do you want to have in your neighborhood? Do you want to have the convenience of living in a big city or the quietness of the country?
Your credit score will determine how good of a loan you can get. When making the commitment to buy a home, make sure your credit is in good shape so you can get the best rate possible. A 1% difference in your rate for a $200,000 mortgage can cost you more than $45,000 in additional interest if you have a 30 year fixed loan.
Before you start looking at homes, talk to a lender to find out exactly what you can afford. He can also give you an idea of what your monthly payments will be based on what you can qualify for. Your mortgage is a big commitment and should all be analyzed early in the process.
Keep the closing costs in mind. In addition to your down payment, which will vary depending on the type of loan you get, you will have to cover closing costs. In some cases, you can get some help from the seller. Once you move in, you will have to furnish the home, buy the necessary equipment to maintain the yard, buy appliances such as washer and dryer, and so forth.
If you are looking to make a commitment to buying and owning a home, please call The Lawhead Team!