If you seek, to take advantage of that portion of the so – called, American Dream, which includes, owning a home, of one’s own, it’s relevant, and important, to fully understand 5 important, financial considerations, which must be considered, from the onset. While, when done, properly, fully, and in a well – considered, way, home ownership, may, be extremely fulfilling, if, someone fails to plan, smartly, it may become a nightmare, instead of a positive dream! With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 5 key, financial considerations, for making home ownership, as rewarding, fulfilling, and stress – free, as possible.
1. Objectively, know your present financial picture: Don’t lie, to yourself, about your present financial picture! How is your personal credit, and, is it, where it should be, to help, purchase, the right home, at the right total costs? Honestly, evaluate, what you can presently, afford, both, up – front, for a down – payment, and related closing costs, as well as on a monthly basis, including, mortgage principal and interest, real estate taxes, etc, utilities costs, reserves for unanticipated expenses (including repairs, renovations, appliances, roof, windows, HVAC, etc).
2. Future considerations: What do you anticipate, in terms of your earning power, personal comfort zone, job security, and, other, potential contingencies, and ramifications, etc? Will the home meet your personal needs, now, and into the future? Are you committing, to the overall costs, wisely?
3. Needs; goals; priorities: What are your present housing needs, and, what do you believe, your future ones, might be? Are your housing goals, actually, personal ones, or, do you simply, seek to, Keep up with the Joneses? How do your priorities, align with your personal self – interests?
4. Short, intermediate, and long – term: Goals and needs, fall into several categories, including short, intermediate, and longer – term ones! Are you looking to reside, somewhere, for a short – time, and, relocate, or, to make this house, one, for your lifetime?
5. Don’t be house – rich: Avoid, risking, being house – rich, but constantly, stressed, and overwhelmed! Enjoying your residence, includes, financial affordability, and comfort, meeting your true needs, meeting, and/ or exceeding your expectations, etc!
Since, for most of us, the value of our house, represents our single – biggest, financial asset, doesn’t it make sense, to be prepared, realistically, for the financial realities of home ownership. Will you commit to this pursuit, wisely?