Home Buyers -- 4 Questions to Ask Yourself

Home Buying Advice from Rochester MN REALTORs David and Lois Marris

Whether you are buying your first home or you've bought a home before, ask yourselves these questions as you consider your options.

1. Does buying a home fit in with my overall financial goals?

Home Ownership is just one of many financial goals.  Ask yourself these questions as you prioritize all of your goals:

• How long will I live in this home?  We suggest 3 years minimum, preferably 5 years.
• Will I still have enough money for unexpected expenses and emergencies?
• Would buying a home financially stretch me beyond my comfort zone?

2.What can I comfortably afford?

Focus on what you can afford rather than "What Can I Borrow?" Consider:

• Down payment
• Interest rate
• Property Taxes
• Monthly heating/cooling costs
• Lawn care costs
• Association Fees
• Home Maintenance costs

We provide a pre-qualification tool which helps you decide what you can comfortably afford when considering home ownership.  Our payment calculator will help determine your monthly payment.

3.  What are the benefits of home ownership?

Historically, home ownership is one of the only investments you can use on a daily basis and still expect it to appreciate in value.  As a general rule, most home owners can deduct their mortgage interest paid,  property taxes and closing costs from their federal income tax returns.

It is difficult to put a dollar value on some home ownership benefits.  Many families have told us over the years that the greatest benefit is stability.  A roof over your head, good neighbors, a safe environment and a peaceful nights sleep are just a few examples of the value of home ownership.

4.  What can I do to prepare myself if I can't buy a home now?

Start saving!  Consider putting a little bit away each month for the down payment on your home.  Protect your credit score by making payments on time all the time.  Look into government programs designed to assist home owners. 

It's also never too early to work with us.  Call us to discuss your situation and we'll be able to keep an eye on good deals in your price range or mortgage and home buyer programs.  Then when you're ready to buy, we'll have a head start!