Preparing for Home Ownership
30th October, 2010 - Posted by admin - No Comments
Owning a home is nearly everyone's goal. It can be a sound investment if you are financially healthy. However, home ownership is expensive. Beyond the cost of a mortgage, owners must pay taxes, insurance, and upkeep. Many homeowners are part of a homeowners association and are required to pay monthly or yearly dues. Before taking on the responsibility of owning your own home, prospective buyers must determine their readiness to assume the burden of debt and maintenance. Ask yourself these questions:
*Am I in debt? Persons with a high debt load not only have difficulty qualifying for a mortgage, they also place themselves in a precarious fiscal position when they take on more debt in the form of a mortgage. If you have several high interest credit cards, consider debt consolidation. Another way to get debt under control is to pay off the smallest debt you have and then attack the next debt, using funds saved from the paid off debt to double up on your payments. Do this until you have your credit card debt eliminated.
*Do I have a savings account? You should not consider buying a home unless you can make at least a 5% down payment. In addition to your down payment, you should have enough saved to provide for unexpected repairs or family emergencies. If you are living paycheck to paycheck with no savings, now is not the time to buy a home. Begin saving now. Sacrifice now for your future goals. Make a visually rewarding chart to track your progress towards your savings goal.
*Am I staying in the area long enough to make a home purchase financially rewarding? Buying a home takes a lot of money, and it takes a while to recoup the expenses involved. Be sure of your income and the amount of time you will be able to spend in your new home.
Posted on: October 30, 2010
Filed under: information about
No Comments
No Comments
Leave a reply