If you are looking to take advantage of that part of the so-called American Dream, which includes owning your own home, it is relevant and important to fully understand 5 important financial considerations, which must be considered: from the beginning. While owning a home can be extremely satisfying when done properly, comprehensively, and well-considered, if someone doesn’t plan smart it can turn into a nightmare, rather than a positive dream. With that in mind, this article will briefly attempt to consider, examine, review, and discuss 5 key financial considerations for making homeownership as rewarding, satisfying, and stress-free as possible.
1. Objectively, know your current financial picture: Don’t lie to yourself about your current financial situation! How is your personal credit, and is it, where it should be, to help, buy, the right house, with the correct total costs? Honestly, evaluate what you can currently afford, both upfront and for the down payment and related closing costs, as well as monthly, including mortgage principal and interest, real estate taxes, etc., utilities. costs, reserves for incidentals (including repairs, renovations, appliances, roof, windows, HVAC, etc.).
2. Future Considerations: What do you anticipate, in terms of your purchasing power, personal comfort zone, job security and, other, possible contingencies and ramifications, etc.? Will the home meet your personal needs, now and in the future? Are you committing to overhead costs wisely?
3. Needs; goals; priorities: What are your current housing needs and what do you think your future needs might be? Are your housing goals really personal or are you just looking Keep up with the joneses? How do your priorities align with your own personal interests?
Four. Short, intermediate and long term: Goals and needs fall into several categories, including short, medium, and long-term. Are you looking to reside, somewhere, for a short time and relocate, or make this home unique for your entire life?
5. Do not be home – rich: Avoid, risk, be house – rich, But constantly stressed and overwhelmed! Enjoying your residency, includes, financial affordability and comfort, meeting your true needs, meeting and / or exceeding your expectations, etc.
Since our home equity represents our greatest financial asset for most of us, doesn’t it make sense to be realistically prepared for the financial realities of home ownership? Will you commit to this quest wisely?