American Dream Homes: Important Things to Consider When Buying a Home
It is easy to fall in love upon first seeing your dream house, imagining a new place where you and your family can live happily ever after, but when it comes to buying a real estate, it is not good to let your emotions enter the equation. 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. It is important to consider not just the upfront cost of the mortgage and interest but also the taxes, insurance, utilities, maintenance, and other fees.
Before buying a house, it is important to evaluate the amount the lender is willing to lend, the amount you can afford to spend, the things you are willing to sacrifice to buy a house, and the amount of downpayment you can afford. Most lenders allow up to 36% of your gross monthly income to be spent on mortgage and interest, but the ideal is spending less than 28% of a household income for the mortgage. 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. 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). While there are variable and fixed interests loan rate, the important things to consider when looking at a potential loan include the required monthly downpayment, term, and interest rate, as well as 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. Learn more about getting the best American Dream Homes only from the expert, just click for more here.