riving by homes for sale into foreclosure or they sold it
in your area, or leafing and moved into a cheaper one.
through those glossy
magazines, can be really Owning is not renting. It’s that
exciting. Buying a home is one of simple. The most basic rule of
the biggest investments you’ll thumb is that you should add
ever make, and usually marks a 40-45% to the base prices of the
major life transition as well. homes for sale you look at when
That’s the problem. Too many calculating true monthly cost.
first time homebuyers are so Why?
swayed by the excitement and
opportunity that homes for sale Well, that 40-45% is what it will
represent, that they forget to take to cover home insurance,
look at the most basic factor: property taxes, maintenance and
what can I afford? repairs, and PMI (Private
Mortgage Insurance) on the homes
Finding Homes for Sale in Your for sale you like. So if you are
Price Range looking at homes for sale around
$250,000, you really need to
It sounds simple. Take what start calculating your monthly
you’re paying in rent and apply payment from a price of $362,500.
it to a mortgage calculator to Sobering isn’t it?
determine which homes for sale
are in your price range. Please- How to Test Drive Homes for Sale
wait. This is a rookie mistake
that accounts for a huge number Once you’ve calculated the true
of homes for sale on the market monthly costs of the homes for
each year. Because the buyers sale that you want- give them a
didn’t understand the true costs test drive. If the monthly
of home ownership the home went mortgage payment is higher than
your current rent, put that extra ownership, you can plan ahead,
money into saving for a few put money aside for a larger down
months. If you can do this, then payment, and get into the home
you can easily afford the homes you want when you can really
for sale in your price range. And afford it. One of the benefits of
don’t be discouraged if you have taking this delayed gratification
to move down in price range and route is that you can avoid PMI
get less of a house than you costs completely by having a 20%
really want. This is why they’re down payment.
called “starter homes.”
Looking at homes for sale is
If you look at homes for sale in exciting. But actually buying a
a lower price range than what you home should be a well-planned
really want, just come up with a process with few big surprises.
plan for your next move. There Knowing the true costs of homes
will still be plenty of homes for for sale will ensure that home
sale on the market in a couple of ownership is empowering, not
years. And now that you overwhelming.
understand the true costs of home
About the Author:
John Harris is a researcher and writer on applicable real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more information please visit Rancho Bernardo Realtors
Read more articles by:
J Harris
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