Buying a home is one of the largest purchases you will ever make. Planning accordingly to make the most of home ownership is crucial. Here are a few key pointers to make home buying less stressful, and maybe even get you a sweet deal out of it:
Know your price range. The amount of money you should be spending and the amount of money you qualify for are two different amounts. Stick with the budget based on what you should be spending.
Stay on the low end of your budget. There are many positive outcomes to buying a home on the lower end of your budget. You have more room to spend on inevitable home ownership repairs should they crop up in the near future, and living in a neighborhood on the lower end of your budget controls “neighborhood envy” – wanting what everyone else around you is buying (that you won’t be able to afford if you max out your budget).
Consider your down payment. Just because you qualify for a loan with a zero down payment doesn’t mean it’s a good idea.
Choose the right loan term. Be knowledgeable about the mortgage rates available between a 15- or a 30-year fixed-rate mortgage. Will your cash flow be stable enough to maximize the retirement savings vehicles available if you select a shorter term payment?
Interested in learning more? Read the full article on Columbia Daily Tribune.
As a financial planner specializing in comprehensive financial planning, Tim enjoys helping clients in Columbia, MO with managing their taxes, financial risks and other financial issues.
If you would like to learn more about this and other personal financial planning topics serviced by Clarity Financial please contact us at 573-447-7007. Clarity Financial, LLC is a fee-only financial advisory firm in Columbia, MO. Appointments are welcome and initial consultations are free.
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