When you are in the market for a new home you are prepared to spend a huge chunk of money, but just because the bank offers you a $400,000 mortgage doesn’t mean that it is wise for you to take the full amount. Generally speaking, you should take at least 20% less than the bank offers you in order to protect your financial security. By purchasing a home at the very top of your budget, you risk being in a tight financial position for very many years in the future if anything should go wrong. Additionally, unless you are willing to take a risk, you should always go with a fixed-rate mortgage for a set period of time. A traditional 15 or 30 year mortgage will protect you against a jump in your monthly payment in the future. Finally, don’t get caught off guard by unexpected costs. In addition to the down payment and closing costs be prepared to pay appraisal fees, broker fees, loan application fees, inspection fees, plus ongoing costs like property taxes, homeowner’s insurance, homeowner’s association or condo fees, and hazard/flood insurance in addition to your monthly mortgage payment. To be best prepared for all of these costs, be sure that you keep a significant portion of cash available rather than using it all toward your down-payment. This will help insure better financial security for your family and your future.
Thinking of buying or selling a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you –302-629-6693.