Buying a home? Don’t forget these 3 money tips
When it comes to buying an Arizona home, there are many experiences even the most seasoned home buyer wished they could change. It’s impossible to be too prepared when buying a home, especially since it’s likely the biggest purchase you’ll ever make. So whether you are a first time buyer or an experienced home owner, buying a house requires you to do your homework. Don’t forget these 3 money tips before you buy a home.
1.) Know your limits: Finding out that you are qualified for a $550,000 mortgage can be an exciting thing. But just because you can, doesn’t mean you should. As a general rule, it’s smart to take twenty percent less than what the bank will lend you and to be sure to have an idea what your mortgage, taxes, and maintenance costs could run you before committing to your Arizona dream home. Before you home shop, calculate the mortgage payment for the home in your intended price range, along with the increased expenses (such as taxes, insurance and utilities). Then bank the difference between that and what you’re paying now.
2.) Calculate ALL costs: Beyond the money for the down payment, there are additional costs involved in a home purchase. Home purchasing costs can include loan application fees, closing costs, appraisal fees, buyer broker fees, and more. After you sign all the paperwork and receive the keys to your new home, there are also homeowners insurance, property taxes, and possibly Homeowners Association fees. A cash cushion will also help cover maintenance and repair issues that come up when you own a home. Don’t think a stellar walkthrough means you won’t get hit with an unexpected big ticket repair later.
3.) A penny saved is a penny earned: Lenders want to see that you’re not living paycheck to paycheck so it’s important to beef up your savings. If you have three to five months’ worth of mortgage payments set aside, that makes you a much better loan candidate. A hefty savings can also help you save for a down payment that could help lower mortgage payments.
If you’d like more information on what you should know before you buy a home or if you want to build a custom home in Prescott, please contact Crystal Creek Homes and Realty and Crystal Creek Builders today.
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