It seems easy enough. Just find a home you like and buy it as long as the mortgage payment including taxes fits your budget. The problem is that there is a lot more to buying and owning a home that fits you and your income than that.
That's because transitioning from renting to owning a home costs more than just the mortgage and taxes. When something breaks or quits working, you can't just call the landlord, says Brian Ward, a respected Sarasota real estate agent.
Most young singles and married couples are carrying a pretty hefty debt load from either college loans, car payments or credit card purchases before they think about buying a home. All of these expenses need to be included in your financial analysis before you start looking at homes.
The smart first step in the home buying process is to sit with a competent Realtor and review your finances. He or she will review all of your sources of income and all of your expenses. In addition to assuring that the cost of a home's PITI (that's mortgage Principal, Interest, Taxes and Insurance) fits comfortably within your budget, you need to leave yourself a "cushion" for all the other home ownership expenses that will surely come with the home -- things like furnishing it, paying monthly utility bills, even buying a lawn mower and yard tools as well as repairing or replacing an appliance, a broken window or a faulty garage door opener. Yes, the expenses associated with all of these things and more are about to become your responsibility.
Many young singles and married couples are carrying a fairly heavy debt load from college loans, car payments or credit card purchases even before they think about buying a home. All of these expenses need to be included in your financial analysis.
An experienced and honest Realtor like Cheryl Stimac, a well known Tampa real estate expert or Judie Berger, an expert Siesta Key realtor will help you find your way through this fist-time home buyer process doing you a big favor in the process.
If there's one source of friction a young couple does not need as they start their home ownership experience is being "house poor," a situation where your new home eats up so much of your income that you have nothing left with which to enjoy your life together.
Take you time, do your homework, and only then, go out with the Realtor of your choice and find that home that is not only perfect for you but which fits your pocketbook as well as your dreams.
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5 comments:
This is so TRUE and so IMPORTANT. Thanks for providing a little insight into the full cost of owning a home.
Wow, I almost got in over my head forgetting all these things because I was so enamored with the possibility of getting that $8000 tax credit. An honest realtor kept me from making a big mistake.
Good real estate agents will listen to your wants and needs and arrange to show only those homes that fit your particular parameters. Your agent should preview homes before showing them to you as well.
Those are things that buyers should consider when buying a home. I've also read your other post and find all your post very informative. There is always great information on this site. Thanks for sharing!
condo in Philippines
Buyers shouldn't be only considering the payment options for a home but also the other existing liabilities they have. Thank for this post.
Regards
Ray Brickman
Philippine Condo Rental Agent
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