Why is affordability important when it comes to selecting a home?
In order to make a successful investment when purchasing a home, it is important to buy as much house as you can afford. This means you must take a hard look at your current expenses to decide what you can live without in order to determine how much house you can afford. A larger house may require much more monthly cash for utilities, maintenance, and property taxes.
How can I find out how much house I can afford?
Many financial calculators are available online. They allow you to enter information about your income and expenses, and will roughly compute how much you can afford. Only a bank or mortgage adviser will really be able to tell you how much you can afford.
What factors should I consider when thinking about affordability?
You must look at such factors as your current income; your debts and the payments for each of them each month; your current monthly expenses; and what money remains to go to your mortgage payment. The second big factor that will affect your mortgage payment is the amount of your down payment. The larger your down payment, the less money you must borrow, reducing the amount of interest you pay. You also may be able
A chart of home ownership rates compiled by the U.S. Census (source: census.gov).
Location, location, location is the mantra of real estate agents. A house by the beach is highly desirable, but what if there are no schools nearby for your children? Consider many factors before buying.
to secure better terms for the mortgage amount. For further information, consult a mortgage lender.
What are the most important rules to follow when buying a house?
You have probably heard the answer before: Location, location, location. This means the place where you purchase your house is one of the most important factors to help you maximize the return on your investment.