Buying A House, Apartment Or A Rental Property

Switching from renting to owning a home requires planning and a credit history. Or if you’re going to live in the nicest house in a transition area, that, too, could adversely affect how much your house is worth – which may not matter to you if you plan to live in the place for years to come and see it as a place to live and not an investment.Buying a House

Mortgage terms, on the other hand, improve as the amount of available cash goes up. If you are fortunate enough to amass even more than the 20% required for the best rates, the extra money can go toward decorating and fixing up your new place or to lowering your loan amount and the resulting monthly payments.

At a 4.5 percent rate of interest (the kind of rate you’d get with a small down payment), you’d need to pay about $1,650 per month on your loan; roughly another $406 per month in property taxes and an estimated $100 per month for homeowner’s insurance.

Not a 100% guarantee the bank will loan you money – If you’re given loan pre approval based on having $20,000 in savings, but by the time you come to buy a home, you’ve spent some and you have only $18,900, then this is likely to cause some issues with your loan pre approval.Buying a HouseBuying a House

If someone asks why you want to buy a house and your first answer is something along the lines of Because I’m wasting money on rent” or Because it’s a good investment,” you might not be mentally prepared for all the responsibilities that come with home ownership.