It can be very exciting when you are
about to make your move in purchasing your very own home. There are of
course some factors that would have to be considered before you make
your move. This is a huge investment and like all other investments, you
need to check and review the details of the home you have your eye on.
The very first thing is to assure that you are offered the market price.
This means that you would have to do your own research in order to find
whether you are getting a fair price on your home. Check the going
rates of the other homes in that area that is comparable to the ones you
are trying to get. There are third party websites that would help you
do this easier.
This time you need to make sure that you
are aware of how much you can actually afford. Rarely do we find
homeowners who would acquire their home in cash or immediately make full
payment. You can start off my determining your own disposable income.
This may be tedious if you think about it but it will definitely help
you decide on how high you can go if you do make an offer for the house.
It would also help if you can include into the computation the other
costs that will come with the purchase of the house. This would usually
include the insurance, tax and others. This should give you the final
numbers on what you can expect to spend on a monthly basis. This will
then be easier to set against your monthly income. It would also be best
if you can take advantage of mortgage insurance. I understand that it
costs more but it will save you from losing your home in case you lose
your source of income along the way. Do not forget that this is going to
be a longer term commitment and you may not know what could happen
along the way.
The common tip is to allocate around 27%
to 29% of your monthly income into the home cost. If you go beyond this
then you are risking you are very own cash flow in a monthly basis. It
is not like you can just suck it up because as mentioned, this can go
for a couple of years and you might risk losing more than the home if
you are not careful. If you are not really well versed with the entirety
of realty and its dynamics, feel free to talk to a real-estate agent.
They do this for a living so they pretty much know whatever there is to
know about the decision you are going to make. We all know that this can
be a great investment but you have to look into the other possible
costs that you may incur. Provided that you are able to set aside enough
money for the house maintenance but in the long run you may encounter
some costs you have not come prepared for like repairs and what not. You
have to make sure that you evaluate your decision thoroughly.