First of all, it is important to decide why you want to buy a home.
Truth is that there is no such thing as a free housing.
There is only one alternative to home ownership - living in the other people's property.
Here in Greater Cleveland we have a plenty of very good homes and condominiums offered for sale for a very reasonable price. Interest rates are still low. Different types of financing are available to the qualified buyers, including low down payment FHA programs
To make opportunities shine even brighter, a great incentive offered by the government - the $8,000 First time home buyers tax credit of 2009 . You may be eligible if you are the first time home buyer AND you close on your home purchase before December 1st, 2009. Time to become serious about the home buying!
However even if you are the first time home buyer and you are excited about opportunity to buy your dream home and get up to $8,000 in tax credit, you still need to decide yourself, is it better to rent or own your place.
It is usually more beneficial to buy instead of rent except when:
- You plan to move soon, within few short years
- The house you buy is similar to the house you rent, and your rent is very low (less than 2/3 of what your total monthly payments would be for buying the house).
Here is your Step One towards making your dream come true.
You should simply make sure that you are ready for homeowner’s responsibilities and can afford it. You should have a good holding power in addition to a purchasing power in order to become responsible and happy homeowner.
It is useful to self-check yourself before making decision to buy. “If you do not have a clue what it really costs to own a home, how much of a house you can truly afford, and if you are just plain capable of owning a home, I am here to tell you that your dream will most likely turn into your greatest financial nightmare”, best selling author and financial advisor Suse Orman says.
Your buyer's specialists can help you do this assessment easier. Just for starter, in order to estimate the real costs of owning a house, please make few calculations. Your monthly payment will include:
- Principle and Interest (before you pay off your loan)
- Private Mortgage Insurance (PMI) if you put less than 20 % down (before you build 22% equity in your house)
- Property taxes (forever), assessments and levies (if any exist)
- Homeowners insurance (obligatory while getting your house financed, voluntarily when paid off)
- Homeowners association dues (if there is a Home Owners Association)
- Utilities
- Maintenance costs.
Please don't forget to allow about 45 % of your Principle and Interest mortgage payment to cover the rest of your housing expenses.
If the costs and risks do not over-weigh the advantages and pride of home ownership, you are on the right page.
Let us help you to become the owners of your dream home! Good luck!
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