Buying a house is not a cheap undertaking. You will be spending a lot of money, not just upfront, but also in the years to come. So, before you get into the home-buying process, you need to carefully assess your financial condition and determine if it’s a green light from there.
To determine whether you are truly financially capable of homeownership, there are several things you need to consider such as the following:
- Consider the down payment.
You need to save enough money for the down payment. How much it is depends on the purchase price of your home. There is a breakdown you can see to determine how much you should set aside for the down payment.
If you are purchasing a home priced at $500,000 or less, be prepared to shell out a down payment that is 5% of the asking price. For homes priced at $500,000 to less than a million, you are going to pay 5% of the first half million and for the succeeding amount, 10%. For houses worth a million dollars or more, you need to prepare 20% of the asking price for the down payment.
- Calculate your monthly mortgage payments.
To have a better understanding of how much you need to spend every month on top of all your living expenses, use a mortgage payment calculator in Burnaby. The mortgage payment calculator in Burnaby will give you a better idea of your financial standing once you already have your house.
Factor in the costs of the property taxes as well. In addition to that, you need to consider the costs of buying home insurance. Don’t just buy a house without using a mortgage payment calculator in Burnaby.
- Consider the closing costs.
Many people don’t consider the closing costs when they are buying a house. Closing costs are the additional fees you are going to pay to transfer the property to your name. There may also be other fees involved with your realtor.
- Set aside money for your emergency fund.
It’s better if you already have an emergency fund before you start looking for a home. An emergency fund can tide you over when you are dealing with financial emergencies. That way, you won’t have to worry about not being able to pay your mortgage on time.
Buy only the house you can afford. The bigger the space you have, the more you will have to spend on it. So assess your needs and be realistic about the kind of home that fits in your budget range. With the help of Brandon Gee-Moore Personal Real Estate Corporation, you should be able to find a real estate property that works within your budget range.
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