Personal Finance Case 5.07
What questions should you answer when assessing your needs or goal in owning a home?
A recent study shares seven questions that a first-time home buyer should consider as an answer when owning a home.
1. Is owning the roof over your head your No. 1 priority?
"Your answer is going to be determined on the other things you've got going on in your life. Have you started saving for retirement, or are you planning to begin soon? Purchasing a home should coordinate closely with the rest of your priorities. Having other financial goals does not deprive you from purchasing a home, but it could render assistance to narrow your price range or lead you to be considerate to put off the purchase for a few years."
2. Do you expect any big changes in your …show more content…
Will you qualify for a mortgage?
"For many first-time buyers, meeting with a bank representative to talk about mortgage choice is a truthful moment. Before one could get to that point, it is advisable take a few minutes to calculate your debt-to-income ratio. That figure will compare the amount of debt you have contrary to your general income. Banks often use this method to assess your ability to manage a mortgage.
4. How's your credit?
Before applying for a mortgage, it is proper to take the benefit of your right to a free credit report from each of the top credit bureaus to ascertain where you are standing.
5. Have you saved enough for your down payment?
There are, however, many exclusions to this rule. In some cases, you can take precautionary measures investment assets as collateral to render support so as to diminish your down payment. "While 100% financing may be possible, it may not be wise. It's significant to see that you are comfortable with the monthly mortgage payment, which includes the principal on the loan, plus interest, as well as the amount put aside monthly to cover real estate taxes and insurance.
6. Are you aware of all the expenses of being a …show more content…
Now that you've thought through what becoming a homeowner might mean for you, do you want to continue renting for awhile longer?
"Don't feel pressured by the conventional wisdom that now is a good time to buy because real estate prices and interest rates are still relatively low. That way of thinking makes more sense for someone who is investing in real estate. You don't want to get caught up in the noise around real estate when you're making a decision about your family and your future.
"Even when you can afford to purchase a home, it may not be the best move for you right now. Look at your take-home pay and living costs—and how those numbers will change when you move into a home. Even when you factor in the mortgage deduction you'll be able to claim on your taxes, in some areas renting may still be more economical than buying.
Personal factors such as your age, family size, health, and career help you to answer some of the following key
A recent study shares seven questions that a first-time home buyer should consider as an answer when owning a home.
1. Is owning the roof over your head your No. 1 priority?
"Your answer is going to be determined on the other things you've got going on in your life. Have you started saving for retirement, or are you planning to begin soon? Purchasing a home should coordinate closely with the rest of your priorities. Having other financial goals does not deprive you from purchasing a home, but it could render assistance to narrow your price range or lead you to be considerate to put off the purchase for a few years."
2. Do you expect any big changes in your …show more content…
Will you qualify for a mortgage?
"For many first-time buyers, meeting with a bank representative to talk about mortgage choice is a truthful moment. Before one could get to that point, it is advisable take a few minutes to calculate your debt-to-income ratio. That figure will compare the amount of debt you have contrary to your general income. Banks often use this method to assess your ability to manage a mortgage.
4. How's your credit?
Before applying for a mortgage, it is proper to take the benefit of your right to a free credit report from each of the top credit bureaus to ascertain where you are standing.
5. Have you saved enough for your down payment?
There are, however, many exclusions to this rule. In some cases, you can take precautionary measures investment assets as collateral to render support so as to diminish your down payment. "While 100% financing may be possible, it may not be wise. It's significant to see that you are comfortable with the monthly mortgage payment, which includes the principal on the loan, plus interest, as well as the amount put aside monthly to cover real estate taxes and insurance.
6. Are you aware of all the expenses of being a …show more content…
Now that you've thought through what becoming a homeowner might mean for you, do you want to continue renting for awhile longer?
"Don't feel pressured by the conventional wisdom that now is a good time to buy because real estate prices and interest rates are still relatively low. That way of thinking makes more sense for someone who is investing in real estate. You don't want to get caught up in the noise around real estate when you're making a decision about your family and your future.
"Even when you can afford to purchase a home, it may not be the best move for you right now. Look at your take-home pay and living costs—and how those numbers will change when you move into a home. Even when you factor in the mortgage deduction you'll be able to claim on your taxes, in some areas renting may still be more economical than buying.
Personal factors such as your age, family size, health, and career help you to answer some of the following key