Recently a study shows that most of the home buyers are also the first time home buyers. If you are among them you should definitely plan your purchase properly. Before you start the home buying process it is important for you to get the answers of few questions, these answers will help you to better understand the home buying process and your finances.

Planning for Home-ownership

The decision of buying a home cannot be made overnight. It can take months or years to make this decision. For some people it’s just about the right time. Many factors can be involved behind the decision of buying a home. Maybe your family is increasing, or you have decided to move to a new neighborhood, maybe your leasing term is ending, so it could be almost anything.

Whatever the reason is, you just can’t make this decision overnight. Therefore it is important to look at your financial condition realistically before making the home buying decision. Also keep in mind your future goals and aims.

Cost of Home-ownership

The decision of buying or renting a home depends on your financial situation, although the monthly mortgage payment can be lower than rental payment but the ongoing cost of homeowner can be much higher. Because homeowners are not only responsible for mortgage payments but they are also responsible for real estate taxes.

Also it should be kept in mind that houses, even new ones require some kind of maintenance and renovation. So some savings should be kept aside for this purpose specifically. Therefore, it is important to manage your income, debts and current finances wisely.

Affordability

Instead of focusing on your maximum home purchase price, it is important to focus on the maximum monthly payment which you can afford to pay and then by considering the current mortgage rate you can determine your maximum home purchase power.

When you’ll focus on maximum monthly income rather than maximum home purchase price, it’ll become easy for you to formulate a budget which will include all the cost of homeownership and not just principal and interest amount.

With mortgage rates still low low, prospective first-time buyers may want to move ahead their time frames. Mortgage rates are expected to stay low in 2017 as well. Get today’s live mortgage rates now through Avon Financial contact us today at 905-216-5563.

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