What You Need to Know About Buying a House

What You Need to Know About Buying a House

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What You Need to Know About Buying a House

What You Need to Know About Buying a House. Chron writes, “Nearly two-thirds of millennial homeowners have regrets about their purchase, according to a study by Bankrate.com. The most frequent complaint is finding out that maintenance and other costs are more expensive than had been expected.

Bankrate Analyst Deborah Kearns said homebuyers should set aside 1
“budgeting early on can prevent dipping into emergency savings or going into debt to handle these added expenses,” she said. “Buyer’s remorse can easily be avoided with adequate research and planning.” percent of their

Sixty-three percent of homeowners ages 23 to 38 had regrets about their current home purchase. Of those, 29 percent cited unexpected costs, 19 percent said they bought too small of a house, and 13 percent regretted the location. The age group had more regrets than any other; Only a third of baby boomer homeowners, ages 55 to 73,  had regrets about their purchase.

What You Need to Know About Buying a House

Know What You Can Afford

After submitting a pre-qualification application with an online bank, you may be told  you are qualified for a $250,000 mortgage. You were surprised. After you considered the mortgage amount, taxes and insurance and the other bills, the most you thought you could afford was $175,000. It doesn’t matter how much money the bank is willing to loan you. What matters is what you are comfortable paying every month, and that number might be much, much lower.

Buy A House You Can Afford Now … And Later

Figure how much you can afford now and later. What happens if you are both working and then your life changes with a baby and one of you stays home? Think about the expenses you might have down the road. Will you have to pay for private school? For a nanny? Your car is paid off now, but how long before you’ll have to replace it with a new one? Make sure your mortgage leaves you with some wiggle room to take on new expenses when necessary and save more in preparation for them.

Your Monthly Payment is a Lot More Than Your Mortgage

Chime shares. “Your monthly housing payment is a lot higher than your mortgage payment alone. Here are the main elements of a monthly housing payment:

  • Principal and interest: This amount goes toward paying off the mortgage loan.
  • Private mortgage insurance: You will pay this if your down payment is less than 20% on a conventional loan. You can, however, request to have it removed once your loan amount is 80% of the value of the house.
  • Homeowners insurance: This coverage protects you against damage and theft. We pay monthly into an escrow account, and the lender makes our premium payment for us annually.
  • Property taxes: These are due annually, but your lender may require you to pay a monthly portion into an escrow account.
  • Maintenance and repairs: Our home is only nine months old, and we’ve already spent money out of pocket for maintenance and repairs. To avoid any nasty surprises, real estate experts recommend saving between one percent and three percent of the home’s value each year. This way, you’ll be able to pay for those unexpected home repairs.

Knowing What You Need to Know About Buying a House will help you avoid Buyer Remorse and enable you to enjoy your new house.

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We have extensive knowledge of the business, a network of resources, and years of expertise. P2 Properties can assist homeowners with a wide variety of real estate problems. We pride ourselves on our reputation for working one-on-one with each customer to handle their situations.

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