American Dream Homes: What You Need to Consider Before Buying a House
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 purchasing a house, it is essential to also evaluate your capability of making an initial downpayment, the amount you are willing to spend, the possible amount your mortgage lender can offer, and then the things you can sacrifice just to buy your dream house. 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. 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. It is best to get a professional help from a real estate agent to have an informed decision when buying a house because there are fixed or variable mortgage loans, and it is important to consider the 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 when looking at a potential loan.
Aside from the cost, it is important to take into consideration the location, community amenities, proximity to government offices, school district, position on the lot, crime rate, walkability, neighborhood, and long-term value. Even if your house is not that attractive, having a great location with nice neighbors, caring community, and peaceful environment will remain a great asset, and you still have the time to improve your home by renovation or home remodeling when you have extra money to do so, making it a perfect place to live in. 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. Click more to get t know about San Diego dream homes today!