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What to consider when buying a home

On Behalf of | Jun 12, 2018 | Residential Real Estate

Those who are currently renting in Delaware may long to be homeowners. Considering the current state of the housing market, however, it could make more sense for renters to put off making a home purchase. Those who are interested in buying a first home should make sure that they won’t be house poor. This means that a homeowner is constantly at risk of losing the property.

Other factors to consider are the impact of other debts on one’s finances before accounting for a mortgage payment. Ideally, an individual will spend no more than 30 percent of his or her monthly income on car, student loan and similar types of payments. Assuming that a potential buyer is in good shape financially, it is a good idea to consider the extra costs associated with acquiring a home.

For instance, it will be necessary to pay a real estate agent and other closing costs. Individuals should also think about whether their current financial situation will last for the next several years. Ideally, a person who doesn’t have a stable job or sufficient savings to endure a change in income will stick to renting. When making the decision to buy or rent, professionals say that a person should let the numbers rather than their emotions formulate their conclusion.

When buying a residential property, it is important to consider the overall costs associated with doing so. An attorney may be able to go over the various closing costs and fees beyond the mortgage itself that a buyer will need to pay. This could alert a buyer to any prepayment penalties the mortgage contains. An attorney can also review a purchase contract to ensure a fair deal.