Planning on purchasing a home?

1-As an investment

2-Tired of renting

3-Planning a family

4-It’s the American dream

6-I’m getting a great deal, price, option to buy, etc.

7-Tax blanket

Whatever the reason why you are purchasing a home, there’s two main questions you will have to address:

First, will it make sense for you financially?

Purchasing a home it’s a long term commitment that can have a big impact on your credit and life style. If you are unable to commitment to your monthly payments, a late payment, usually after 15 days after your due date, will be applied. Any late payment after 30 days will be report to the credit bureau. This may negatively effect your credit rating and can lead towards a foreclosure after several months of non-payment.

Unlike renting, you are responsible for all your repairs. I would suggest having a saving of at least 6-12 month reserve (after down payment & closing cost) for the unexpected repairs.

Normally, your mortgage payment should not exceed more than 30% of your gross (before taxes) household income. As a safe heaven, I will prefer net (after taxes) income instead of the gross income.

Second, Why am I purchasing a home? Would I be better off renting?

Let’s go over the pullet points above:

1. For an investment- It’s only consider an investment after you have sold the property and gain a profit, but in reality it’s consider a liability, you are committing yourself to pay off a debt over 15-30 years. Would you be able to support your monthly mortgage payment?

2. Tired of renting- Tired of paying somebody else mortgage? This is a great motivation factor, but again will you be able to afford the mortgage payments and the expenses in buying a home? Also, unlike renting, you won’t be able be to get up and relocate as you please without any financial obligations.

3. Planning a family- Great time to accommodate your family. You may either purchase or rent for more space depending on your future goals. If you are planning in raising your family in the home for at least 10 years and you have your financial calculations in place, then you are ready to purchase your home for your family. Congratulations, now you are living the American dream!

In the long run, it's always a good idea to purchase a home if you do it correctly.

Please feel free to visit my site with any questions and suggestions.

Thank you,

Ruben