6 Financial Considerations For Home Buyers!

Kim J. Clark

Since, for most, the value of their house, represents, their single – biggest, financial asset, doesn’t it make sense, for home buyers, to proceed, wisely, and in an aware manner, throughout this process, especially, from the perspectives of a variety of financial considerations? After, over 15 years, as a Real Estate Licensed Salesperson, in the State of New York, I have witnessed, how important this process is, and seen many of the potential ramifications, when any types of short – cuts, are attempted/ created! With, that in mind, this article will attempt to briefly, consider, examine, review, and discuss, 6 of these considerations, and why, they are so significant, etc.

1. Credit worthiness: Before, beginning, one’s so – called, hunt, for a home of their own, he should, carefully, and thoroughly, consider, the full extent of his personal credit worthiness! What might be in one’s credit history, which might make getting, the best mortgage, and terms, in a timely, less – stressful manner? Go beyond, merely, the Credit Rating, but, either, yourself, or have a trusted, mortgage professional, examine it, from the perspective of getting a mortgage, and what steps, might make sense, and when, in advance, before beginning! This will assist you, in guiding you, to knowing, what you are qualified for, and what you may be able to afford, However, don’t forget to consider, your own, personal comfort zone, as it relates to this process!

2. Down – payment, and Closing Costs: Although, some types of mortgages, allow, lower down – payments, a Conventional Mortgage, generally, requires 20% down! Do you have the necessary funds, for this, as well as the payments, needed, known as Closing Costs (often, many thousands of dollars, more)? If you do, will using your personal funds, for this purpose, present future ramifications, in terms of preparing for repairs, renovations, and unforeseen expenses, involved in home ownership?

3. Afford monthly costs/ expenses: How confident are you, you will comfortably, be able to afford, the monthly costs, and expenses, of owning a house? Consider all costs, including the mortgage (principal, and interest payments), real estate taxes, escrow items (such as insurance, etc), and the savings to maintain reserves for contingencies, such as repairs, renovations, upgrades, appliance – related costs, etc!

4. Prepare for repairs: Some repairs are predictable, and somewhat – normal, and to – be – expected, and some may be unforeseen! A wise approach is to create a separate account/ fund, specifically, for repairs, and putting a realistic amount in, monthly, in order to self – insure, and be, as prepared, as possible!

5. Renovations and upgrades: Most people have some degree of individual taste, and, therefore, almost every new homeowner, makes certain changes, especially, in terms of decorating, refinishing floors, painting, etc. Other renovations may include addressing the fixtures and appliances, in the kitchen, the Heating Ventilation and Air Conditioning systems, etc. In addition, many people decide, they need to upgrade, or make other changes/ alterations! The reality, and best approach, must be, to be prepared, from the beginning/ onset!

6. Will you find home ownership, part of the American Dream, or will it be a nightmare?: Doesn’t it make sense, to attempt, to make this event, and the act, of owning a home, of your home, as enjoyable, as possible? The alternative, often, may be unnecessary stress!

Before you consider, buying a home, be, as prepared, and ready, as possible! Will you be?

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