- Buying a Home is Encouraged - Darrell Richard
Choosing a new home is exciting, but buying a house is a commitment. Buying the wrong house can take years to overcome financially and emotionally, so it is important to study the area and know what to look for in making a purchase that may be a thirty-year obligation.
Location is Important in Buying a House
A good location increases the value of a home, and selection of an area should be a primary step. Suitable areas are chosen by quality schools and age and appearance of the neighborhood, but a consideration should also be taxes. Property taxes vary from one town to another, and a slight distance may save significant money over the years.
Condition Matters in a Home Purchase
Age of the neighborhood can affect value, as older neighborhoods usually decrease in value after the original homeowners are gone. This takes at least a generation, or twenty-five years, so plan on some decrease in value after twenty-five years. Condition of the home is usually affected by age, too, although home maintenance and upgrades can improve condition.
Affordable Housing is Available
A house purchase is forever, or so it seems, once the payments start rolling by. It's not that the payments are too large, they just come around too often. Locating a home below limits set by mortgage lenders will let the buyer eat and pay the mortgage, too. Paying twenty percent down will eliminate the PMI insurance that adds significantly to the monthly payment. Disciplined homeowners with good credit may also be able to avoid an escrow account and pay the insurance and taxes as they are due. This allows the homeowner to accrue interest on the funds before the payment date.
Paperwork Controls the Future when Buying a House
An understanding of the legal jargon and paperwork is imperative. The interest rate, number of payments, and penalties for early pay-off control the homeowner's future. A review of the paperwork prior to closing can avoid misunderstandings and thirty years of regret, and review with an attorney or real estate professional is worth the time and expense.
A fifteen-year loan instead of thirty can reduce the overall cost of the home, and recently the fifteen-year mortgage rate has been lower, according to the Bankrate website. A fixed-rate mortgage is always better than an adjustable rate or ARM, especially since rates are low and will probably rise in the future. Adjustable-rate mortgages have been the downfall of many American consumers in recent years, along with the "no-money-down" encouragement of mortgage companies. Make mortgage considerations a priority. Ignoring the hard-sell tactics and friendly advice of the lenders may save financial and emotional disaster.
Linda Richard - An antiques and collectibles appraiser for twenty years, Linda Richard has written extensively about pottery and glass. Prior to ...
