Hi I‘m Anthony Lamacchia of McGeough Lamacchia Realty.
In this video we are going to talk about only buying what you CAN afford and when you are truly READY.
That sounds so easy and obvious right? Well look at all of the foreclosures out there these days and it is clear that too many people bought more than they can afford. Yes many of them hit hard times in life by getting laid off or having some other hardship that they did not cause but let’s face it hard times happen to all of us and you need prepare for them when buying a home. Think of it this way most people have a mortgage for 20-30 years. What are the chances that you will not have some sort of financial hardship over 20 years? Very high right? Of course. So the trick is to buy a home that allows you to get into a mortgage that you can pay in good times and bad. If you are a married couple with two incomes make sure you can pay the mortgage on one income for a few months if needed in case one of you gets laid off. In addition to that make sure your mortgage is low enough that you have some extra money to save each month for the house. It is also a good idea to pay extra on your mortgage so that you can pay it down faster. When you own a home no matter how nice or new it may be, eventually things will need to be replaced, repaired and upgraded.
One tip is when you meet with a mortgage broker and they tell you how much you qualify for remember you do not have to buy a home that puts you at the maximum that you qualify for. For example if a mortgage broker tells you that you can qualify for up to a $400,000 purchase price maybe you should consider buying for $350000 or $300,000. Once you own the home and begin paying the mortgage you will love the extra breathing room that this gives you.
It is also just as important to buy when you are truly ready. This is another key to keeping yourself out of financial problems. Too often buyers will rush into buying just because they cannot wait to be able to say they are homeowners. Of course being a homeowner is something to be extremely proud of but it is not something that anyone should rush into. There is nothing wrong with renting an extra six months or a year so that you can save more money and be in a better position to buy a home. One of biggest myths is that renting is always a waste of money. It is a waste of money if you do it for a long time, but if you do it for a few years in order to get yourself in a position to buy there is nothing wrong with that. It is important to remember that when you do buy your home you want it to be your home for many years to come. The days of buying a home and then having it be worth 30% more a year later are over. So buy with a long term mindset!
That is all for “Only buy what you CAN afford and when you are truly ready” thanks very much for watching!
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