Things to Consider When Purchasing a Home in Orange County, CA

The old saying goes that purchasing a home is one of the most important things a person will ever do in their lifetime. Besides the financial aspect of it, purchasing a home means paying to own a substantial amount of personal property. With the substantial gain of buying a home evident, consideration should be made into what the elements of buying a home that every potential homebuyer should be aware of before they take the plunge.

The first thing that every homeowner should think about before purchasing a home is if they can actually afford it. Though this thought might come across as a “no-brainer”, there are many costs and fees associated with home-ownership that people don’t necessarily think about when they’re in the process of purchasing a home. Things such as property tax should be a bill that every homeowner should be prepared to pay every six months to a year for as long as they own the home.

Buyers working with Linda Ginex

Likewise, a homeowner should always consider the fact that they’ll be responsible for any upkeep or repairs that are required for the home. For previous renters, this can be a forgotten expense. This is because a landlord with typically pay for repairs to a rental home. As a homeowner, the responsibility for repairs falls exclusively on the homeowner.

Potential homeowners should also think about the amount of liquid assets they currently have. This is not only because of potential costs like repairs, but because of monies involved in buying the home in the first place. Even if a consumer is using a mortgage with no down payment, there are still fees involved, such as earnest money deposits.

Earnest money deposits are deposits that are made along with an offer to buy a property. When a proposal is created to purchase a home, most homebuyers are usually required to offer a deposit that equals five to ten percent of the price of a home. This deposit is shown as an earnest attempt to show the homebuyer’s seriousness for buying the home. In addition, depending upon the nature of the contract, the buyer might be responsible for closing costs, or appraisals of the property. These are expenses that a homebuyer isn’t always aware of.

Crunching the Numbers

One of the biggest things a homebuyer often fails to recognize is how the decisions that they make now about a mortgage can affect them later. Thing such as variable rates, or annual percentage rates, can make a monthly bill of a mortgage higher than what a person originally intended to spend. Interest only mortgages allow for a homeowner to pay a low amount for a certain number of years, but after that period of time is over, a homeowner can again be forced to pay an amount that is higher than they originally intended. Though these types of mortgages can be beneficial to someone who predicts they’ll makes a higher income in a few years, it can prove a burden to a homeowner who might not have the same amount of financial flexibility.

Owning a home is a huge financial investment. With the financial investment that a home provides, comes huge financial responsibilities. Anyone looking to own a home should properly research all costs and fees that can be associated with owning a home to alleviate any financial hardships in the future.

If you are thinking of purchasing a home, please contact Kevin Piel with Terra Mortgage in Orange County, CA for a quick pre-approval to know how much you qualify for.

Additionally, if you are in the Orange County, CA area and are looking to buy or sell, or know someone who is, please contact Linda Ginex-Bull directly.

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