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