New Home Buyers’ Financial Guide!

    We thought we would like to share a piece we wrote for first time home buyers.

    Many of you are not, but love someone that will be in the market to buy in the coming years.  Sometimes our young ones need to hear it from someone other than a family member right?! So here you go!

    You’re welcome 😉

     

    When buying your first home, there are many factors to weigh and you should never allow yourself to be so swooned by a home that you leave out weighing all the important small details that can make a big difference in home ownership enjoyment.

    Here are some of the biggest financial details to consider that will add weight to your monthly mortgage payment:

    Property Taxes:

    These can vary greatly from one town to the next and have a big impact on your monthly mortgage, so do not ignore this number.

    Interest Rates:

    Interest rates also greatly affect your monthly payment. Looking into where the rates are at, and the forecast trend of the rates whether in an upswing or a downswing is a detail you don’t want to miss!

    HOA:

    The monthly HOA association fee you may or may not have will also add to your monthly fees going out for your home.  HOA or homeowners association fees are an amount of money that must be paid monthly to assist with maintaining and improving properties in the association.

    PMI:

    PMI stands for private mortgage insurance.  It is a type of mortgage insurance you might be required to pay for if you have a conventional loan (5-20% down payment included).  A conventional loan is a mortgage that is not guaranteed or insured by a government agency (eg. FHA – Federal Housing Administration, FmHA – Farmers Home Administration, or VA the Department of Veterans Affairs) It is typically fixed in regards to its terms and rate.

    PMI protects the lender – not you; for reasons of possible non payment.

    In a nutshell those are the primary financials to think about factoring into your mortgage!

    And Don’t forget to factor in all your other bills, food costs, gas, and also recreational activities that you thrive on for joy before making one of the biggest decisions of your life!  As fun as moving in your new home is, you don’t want it to be stressful later on by extending yourself too greatly financially.

    Remember two of the most important things to consider when house hunting and you find something you like are:

    Is this home one that you can picture yourself going home to every day?

    And can you truly afford it?!!!! 😉 😉

    The Mulvihill Group wants to help you find your dream home that you still feel good about after the dust settles from moving and life gets back to the daily grind of bills.  Being house poor is not a party!

    Sincerely,

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