Owning an own house is the most gratifying and fulfilling achievement for any one.A professional, single or married wants to buy and own a place he can call his own, a place wherein he can rest ,meditate and dream at his own free will and at desired time.Nothing gives more happiness to newly weds than buying their own house and starting a new life and raising their family in it.Beyond happiness an own house also contributes to a person’s level of self esteem.There is a necessity to have a place to go home to at the end of each day but owning the place is totally different.They say full satisfaction in life is only attained when you have a place you can call your own.Buying a house is an important decision in one’s life as many factors influence this decision.
The constant dilemma in one’s life before buying a house is---
Should I buy a house or keep renting?
What kind of home can I afford?
How to find and buy a home?
Parameters on whether to buy or keep renting
Save on rent- The major drawback of staying on rent is that no matter for how long have you been living , a month or several years,you eventually have to move out and own nothing while the benefit of buying a house is that you freeze your monthly payments for 15-20 years and then stop paying altogether.Living on rent is a pure expenditure while buying a house is an investment as an asset is built for the home buyer.
Control over issues concerning the living conditions-Owning your own house gives you full freedom to renovate,restructure,design and improve and do any thing to make dream home into a realty.Living on rent would force you to accept the peculiarities of building as well the apartment and many times the landlord customizes the living conditions.
Agreeing on these parameters the first time home buyers end up making wise investment ,as prices escalating with time it is best done earlier.After the decision is made ,the affordability of the dream house is looked upon.
Affordability of dream house
The first house is a dream house which is not a Real Estate purchase or an investment opportunity .People spend lots of time and money in making this dream of theirs come true. When you opt for a property, you should also consider the amenities like space, neighborhood, transport, proximity to schools, hospitals, markets etc. Whether you plan to buy a modest studio apartment or a four-bedroom penthouse, affordability depends on two things: the amount you pay as down payment and the size of the loan you can service. While lenders, real estate professionals, websites, and others can provide you with the generic calculations that show you what they think you can afford, it is ultimately your decision.Only you know the spending patterns of your family.
Craft a proper financial plan that would help you save enough and spend wisely.A home loan will be a huge fiscal responsibility and its better to get rid of it as soon as possible. So it would be a better idea to clear off your other debts before opting for a home loan. Assess your expenditures properly, prioritize them and save prudently. The more you save, the bigger is your down payment and repayment will be easier.
A bank will determine your loan amount by considering your debt ratio,the down payment required, and the interest rate you’ll have to pay.
1) Debt ratio-This is the amount of income you make before taxes and contributions are removed. Then calculate 2 figures called your “front-end ratio” and your “back-end ratio.”
Front end ratio-The front-end ratio shows from the lender’s point of view how much you can comfortably afford to pay each month.
Back End Ratio-The back-end ratio factors in your monthly debt payments to the calculation. It compares your debt to your income, and it is the figure that really matters.
2)Determine the price you can afford-After your debt ratios have been identified , you now need to calculate what price of home you can comfortably consider buying. Your monthly payment will be determined not only by the amount of money you borrow, but also by the interest rate of the loan and also the time frame. The lower the interest rate, the lower your monthly payment. And the shorter the loan term, the higher your monthly payment.
After narrowing on these decision it is sill important to decide on your comfort Zone. Think about how you would feel each month paying the maximum you can afford. Wouldn't you feel stressed? Before you start seriously looking at homes, figure out how much you would be comfortable paying each month.
Finding and buying home simplified.
The most important decision in buying a house is to find a Real Estate Consultant .As you are a first time house buyer he is the one who can assist you in buying your dream house.He is the one whom you can define your requirements .There's more to buying a house than mortgage loans and lenders.Financing is surely a big part of it. With so many developers flooding the market, it some times become difficult to decide on the developer and even more to shortlist the house of your dreams. A Real Estate consultant helps you sail through all these difficulties smoothly,he is the one you would be spending most of your time with in the house-hunting process.
Planman Realty
Real Estate Simplified
No comments:
Post a Comment