Buying a home is a dream come true for many people. In fact, many people spend years saving up the money to purchase a place to call their own. However, people are now thinking twice before purchasing a new home.
According to experts, this is due to the recent financial problems that have been experienced worldwide. The truth is that the recent economic crisis need not prevent or stall your dream of home ownership.
There are some things that you should know before buying a home in this difficult economic time. One reason for this is that there are a lot of financial scams out there right now. If you do not know about loans and mortgages, you may fall prey to one of these scams and lose quite a bit of money.
Remember, purchasing a home is a huge decision. In addition, you will be paying off your mortgage or home loan for many decades to come. This is why it is important to know a little bit about the process before getting a mortgage.
Here are the top three tips that will be of help to you when you are looking to purchase a home.
- Price is very important. It is tempting to purchase a big home which can be very expensive to maintain. If you can actually afford to maintain such a home, there is nothing wrong with living large. However, most people can not afford to live in an expansive home. Although you may meet financial advisers that will claim you can spend up to 33% of your income on your mortgage, this is not exactly true. In fact, most experts recommend that homeowners purchase a home that does not cost more than 25% of your disposable income. If you are handy, you may be able to purchase a home that is in need of repair at a very modest price. This can be a good way to get the home that you want at a price that you can afford.
- Location is also important. The location of your home will determine its price and value. A five bedroom home located in a row home in the city, will cost much less than a 5 bedroom home in the country on a large piece of property. Homes that are located within certain school districts, may command a higher price tag than if the same home were located within a poorly rated district. Of course, even if you find a home that is affordable, you will need to calculate how long your commute to work will be. If you have to drive two hours to get to work every day from the home, it may not be wise to purchase it, even though it is affordable.
- Security is also important. In fact, you may want to check the police reports to see if the area is a frequent crime area. You may be surprised to find out that certain rural areas may have more crime than urban areas.
In conclusion, it is wise to do your homework before purchasing a home. If you purchase an affordable home in a great location where crime is low, you can rest assured that your home ownership dreams will come true!