Tuesday, March 24, 2015

Do You Have Enough in Buying a House?

For many people, buying a house brings a sense of pride and freedom that cannot be matched by renting. When buying a house, you become free from a landlord’s rules, and your monthly payments are actually building equity. Although buying a house may be the first step you take toward building long-term wealth, it is important to understand the pros and cons of home ownership before taking the plunge.

Here is a sneak peek on what it takes to buy a house.  Are you ready?

  1. Ability to settle in a community. Once you commit to buying a house, you are more likely to become more involved in your community because you know you’ll be there for years. You can get to know your neighbors, perhaps join a homeowners’ association, or volunteer for projects that benefit the community or the local school.

  1. Build equity. When you pay rent, you don't own anything. In buying a house, you increase your degree of ownership in your home with every payment. Also, you can borrow against your ownership (or equity) in the home to pay for major purchases and you can refinance your home at favorable rates to help fund major purchases.

  1. Paying your own maintenance. When buying a house, make sure to remember that you must spend time and money keeping your home in good repair. You need to set aside funds for unexpected expenses, such as appliances that break, a service contract on your furnace, or the need to replace your windows.

  1. Search for neighborhood information. If you already live in the community, you may be able to skip this step, but it’s always worthwhile to search local newspaper websites, local government sites, community sites and blogs to find out what’s happening in terms of upcoming development or other issues before buying a house.

  1. Foresee home repairs. Home inspections are essential to buying a house and they most often work in the buyer's favor. Dangerous conditions found in a structure and even flaws can be repaired at the cost of the seller before the buyer takes over the property.

  1. Insurances and taxes. Banks require you get insurance on your actual mortgage, as well. Private mortgage insurance (PMI)is necessary if you don't put down at least a 20 percent or more down payment to make sure you are good on your obligations.

Buying a house is a major decision that shouldn’t be taken lightly. But when faced with rising rent and low mortgage interest rates that make purchasing more affordable, you should take the time to consider the pros and cons of buying a house.

Tam Bay Realty LLC
1408N West Shore Blvd Suite 1000 Tampa, FL 33607
(813) 908-0706
http://www.businesslocallistings.com

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