To buy or to rent ... is that the question? Compare the cost of owning to the cost of renting. Use any payment schedule (supplied by
mortgage companies or banks) to determine monthly payments for purchasing a home. Don't forget to compare the price appreciation vs the rent increase over the length of time you will own the home. For instance, if your rent will increase by 25%, a comparable price increase to a $150,000 home would be $37,000.
This task involve assessing future price movement.
Include in your reasoning that you can itemize deductions on your Income Tax for mortgage
interest deductions.
Determine the price range you can afford. Calculate the hidden factors for the purchase of a home before you start looking. Total your combined monthly income. Factor in the mortgage rate, property taxes, house insurance, legal fees, loan origination charges, inspection fees and any out-of-pocket repairs.
Give attention to the years you figure to amortize these fees (the length of time you're going to live in the house before moving). Figure amount of cash available for
down payment.
Getting a pre-approved loan
- Shop for rates.
- Know how much you can afford.
- Stay within your budget.
- Decide how an agent can help.
- Find someone knowledgeable in the business to save you time, money and worry.
Finding a top-rung agent will streamline your quest giving you the upper hand. This top achiever will prove to be advantageous in guiding you in your decisions and will
yield superior results in negotiation.
