Are you looking for a fresh start in a new home? Feeling overwhelmed by all the details involved in buying a house? Realtor Elvin Villalobos with RE/MAX Interaction Realty has a few tips for taking a few of the headaches out of the home purchasing process.
The three main questions to ask yourself when buying a house are, “When would I want a house, what is my ideal home location, and how much house can I afford and still enjoy life?” Now that you know the three questions, keep reading as Elvin Villalobos breaks down everything involved in these three steps below.
Question 1: When Would I Want to Buy a House?
By creating a timeline for when you would like to buy a home, it will help you make plans to save money, work on increasing your credit score and pay off debt. By planning ahead, you will have more peace of mind when the time comes. Saving for a home requires anywhere between 3% and 30% of the home cost, depending on whether you want to purchase a single-family home, townhome, or simple fee home, which require a minimum 3% down payment, or up to 30% for a condo.
To break it down further, if you were looking at purchasing a home that is priced at $100,000, between 3% and 30% would be $3,000-$30,000 for down payment alone. On top of that, you would have to add around an additional 4.56 – 6% to cover closing costs. According to Elvin Villalobos, some lenders even have fees up to $10,000 for closing costs. As you can see, saving and being ready to purchase a home at least 12 months in advance is essential.
Question 2: Where Would I Like to Live?
When narrowing down the community where you would like to live, Elvin Villalobos advises all his clients to scope out the neighborhoods in the city of their choice. See what would be best for you in regards to amenities and even your commute to work. Take a day off and drive the morning and evening rush hours. Take a spin over the weekend, and check out the nearest restaurants, stores, and entertainment offerings.
Moving not only into a new home, but into a new city and community is a huge step. Make sure it’s the right place for you by doing your homework ahead of time. This will save you a lot of time and frustration when you head out to look at properties with your realtor.
Question 3: How Much Home Can I Afford?
Typically, you will end up spending $800 for every $100,000 that you borrow. That includes taxes, insurance, principal, and interest. Keep in mind that this number may increase if your home is within a governing Homeowner Association. Elvin Villalobos advises a good rule of thumb is that 28% of your annual income should go to home expenses. This means if your annual household income is $100,000, keeping your home costs under $2,500 per month would be a wise move.
This is only a guideline, however, as everyone’s budget is different. Above all, evaluate how much you can afford to pay for your home while still enjoying life. You don’t want to fall into the trap of becoming house poor – which means that you spend so much of your income on your home that you can’t afford to do anything else. Life is precious, and you should be able to enjoy the fruits of your labor.
Elvin Villalobos and RE/MAX Interaction Realty
No matter where you are in the home buying process, Elvin Villalobos and the team at RE/MAX Interaction Realty can help. Centrally located in Tamarac, FL at 7801 W Commercial Blvd, our agents are proud to serve Broward County, as well as areas of Dade and West Palm Beach. Give them a call, or drop by today. You can always count on them to provide the best advice for your needs.