Is It Time To Buy?
Why Do You Want To Buy?
Often times, especially when mortgage rates are low, it’s more affordable to have a mortgage than pay rent. Plus, you are likely to benefit from the Mortgage Interest Deduction when you file your taxes; and the payments you make will help you build equity, thus wealth. Perhaps your commute to work has changed or you are expecting new additions to the household. Maybe you’re looking to downsize. For many, investment in real estate is one of the safest, most dependable means of building that all important nest egg. Ever thought of owning a rental? Maybe you want to use it to set aside cash and pay for your retirement or children’s college education. Bottom line, it’s important to ask if and why this is the best time to make a purchase. My job is to help you make an informed decision when the time is right to move forward.
Has Your Income Grown?
Earnings gone up? Perhaps now is the time to leverage it into a better neighborhood, commute, larger home, more convenient location or other deciding factor. Still, it’s easy to bite off more than you can chew. I know I would rather not be “house poor”, making mortgage payments which stretch the rest of my household budget. Make sure you do the math and the results pencil out the way you need them to.
Can You Afford To Buy?
If you are purchasing using a combination of mortgage and downpayment, it’s important to know what your household budget will be. Most experts agree that costs should not exceed than 33-40% of your income. In fact, many different loan programs place a ceiling on what you may borrow based on your income, assets and other financial obligations.