6 Financial Considerations For Home Buying

BIG PINE KEY, Fla. - Nov. 16, 2022 - PRLog -- Per Diane Corliss, A leading Realtor in the Lower Florida Keys, with the #1 Real Estate Co. in the Florida Keys.
The six most important financial considerations when buying a house must be taken into complete and full account before getting into a contract. Once you have put an offer on a property and it's accepted, you are legally bound to go through with the transaction, unless there is a contingency that arises, like problems detailed in the home inspection. Here are the six most important financial considerations to look at when you're buying a house:

1. Creditworthiness.  How you've paid your bills in the past and the types of credit accounts that you hold will help to determine your credit score. If you do not have a high enough credit score, you will not qualify for a mortgage. But even if you do have a very high score, you still need to be careful about what mortgage product you get into.
2. Down payment and closing costs.  Simply put, the higher the down payment, the less your monthly mortgage will be. Additionally, you may be able to negotiate for the seller to pay most or all of the closing costs, or even roll those closing costs into your mortgage.
3. Monthly costs and expenses.  This is where a lot of people get nervous about buying a home over renting. You need to determine if you can truly afford to own property versus renting where maintenance and repairs are included.
4. Cost of repairs and maintenance.  Speaking of repairs and maintenance, it's not only money out of pocket, it has a lot to do with functionality and lifestyle. It's highly advisable to have a sizable emergency fund set aside for unexpected repairs.
5. Renovations and upgrades.  You'll probably want to make some improvements to the house and that too will come with a financial cost. Although you will probably earn a return on your investment, you must determine if you'll be in a position to pay for renovations and upgrades.
6. Lifestyle.  Lastly, you need to consider if homeownership is truly right for you. For instance, if you know that you'll be moving in the next three to five years, then renting is probably smarter. However, if you're going to stay put for more than 5 years, then buying a home makes a lot more financial sense.

For help or questions about selling or buying a property in the Lower Keys. Please call Diane at 305-849-0934 or see  diane@dianecorliss.com