Buy A Home Without Going Broke

    apply for a mortgage albany nyOwning your own home is part of the “American Dream.” However, according to the National Association of Realtors, 43% of homeowners feel strained when it comes to paying their monthly mortgage payment.

    With some foresight and careful budgeting, you can make sure that you mail that check (or set up auto deduction!) stress-free every month!

    The Good Faith Estimate You Won’t Get

    Qualifying for a loan and being able to afford that loan are two totally separate things. Home-owners often overlook long-term costs when it comes to how much they can afford. Your mortgage payment is NOT just paying for the house. You need to figure in all of the taxes and insurance. And in those first months, factor in closing costs.

    And don’t just stop there. Experts estimate that most homeowners spend between 1%-4% of the home’s value on yearly maintenance and repair. So, if you are buying a $200,000 home in the Capital District, be prepared to spend roughly $2,000-$8,000 on yearly upkeep. Remember — if those pipes start leaking or the A/C unit goes, there is no landlord to call. You’re it! And although a qualified home inspector will be able to examine the property and point out any major problems, they can’t predict what will happen in the future.

    Get Your Financial House in Order

    Before purchasing a home, you need to make sure you’re financially secure. If you’re not out of debt with an emergency fund stashed away, you’re not ready to buy a home. A bargain is not a bargain if you can’t afford your home’s upkeep.

    Although everyone would love to purchase their home with straight cash, few actually do. So, when applying for a mortgage, make sure you put down at least 10% (20% is optimal) down on a 15-year mortgage. A good rule of them is to make your mortgage payment 25% or less of your monthly take-home pay. Each month, try to set aside a small portion for that upkeep, so you’re not in a tough spot should you need to repair a broken fence or fix burst pipes.

    Are you wondering where you stand financially and if you can afford to buy a home in Albany, NY? Give us a call or shoot us an email. We’d be happy to sit down with you and provide a personal assessment. We’d love to get you into the home of your dreams.

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