monetary considerations

What are some monetary considerations to think about before buying a home?


Q: I have my downpayment saved up and I am pre-approved. What other monetary considerations should I consider?

A: Buying a home is the biggest financial investment most people make. Unfortunately many people aren’t as ready as they think they are when they begin their search. Below are some financial considerations:

  1. Buy only if you plan to live there for at least four years.
  2. Besides mortgage, don’t forget to factor in utilities, taxes, insurance, condo fees (for condos)
  3. Start a “maintenance fund” for future needs like a new furnace and roof
  4. Avoid mortgage insurance by putting down 20%
  5. Don’t spend all of your savings. You still have a life, right?
  6. Keep your credit score clean
  7. Do not go on a spending spree
  8. Don’t buy more house than you need
  9. Don’t buy up to your pre-approved limit
  10. Don’t get emotionally involved in a bidding war