Are you Ready to Buy?

Buying a home is usually a tough decision. There are many factors that can influence that decision. If you have been renting, you may start to consider that buying is a better option. The monthly payments of the rent are not contributing to your future. The CEO of Riverside Abstract (see Riverside Abstract on Crunchbase), the title insurance agency, based in Brooklyn, NY, gives you some factors to determine if you are ready to buy your own home.

The financial aspect

First and more important, you have to determine if you can afford to buy a home on your own. The first consideration you need to have is the money needed for the down payment. More often, it is required to put between 10 and 20% of the purchase price of the home as a done payment. Sometimes, you can negotiate for e lesser down payment.

Another thing you have to consider, according to Riverside Abstract escrows, are the closing costs. They can vary between 3 and 6% of the home purchase price. In addition, property taxes are another important thing that you should take into consideration. This taxes will have to be paid annually.

Moreover, you will need a homeowner’s insurance in order to protect the house and the valuables within.

Some secondary costs that go hand to hand with buying a home include appliances, furniture, curtains or draperies, and anything else you need for household living that you don’t already have. But, if you have your own furniture from your previous apartment, this can amount to a considerable expense.

Timing is everything

The real estate market is changing periodically. Sometimes it can be favorable for the buyers and sometimes for the sellers. Riverside experts advise that the best thing you can do is to wait until the market gets favorable for the buyers, because then you will have a greater choice and probably for more favorable price.

Another aspect you need to take into account is that the mortgage rates also rise and fall periodically. In a recent post on their Twitter profile, Riverside claimed that getting the best rate possible would save you tons of money over the duration of your mortgage.

Having the right mindset

You need to keep in mind that there is another side of the coin, when it comes to changing your monthly rent check for a monthly mortgage payment. If you are the home owner, you will have to do the maintenance and home repairs. There will not be a landlord to do it for you. Also, you won’t have those things that an apartment complex can provide, including the workout room, the swimming pool, tennis court, or the hot tub. It these things are really important for you, from Riverside headquarters based in Brooklyn, NY, suggest that you should reconsider your decision of buying your own home.