Top 3 Reasons To Delay Purchasing A Home

S o you have set aside            appreciated enough to cover the    enough funds for a down         costs and commissions of selling,  payment on a house and          you could find yourself in a       closing costs? And you are            serious, financial bind. This      curious to know if there is ever      especially applies to those who    a time when you shouldn’t buy?        buy a home with a down payment of  Regardless of all the benefits of     ten percent or less. In the        buying a home, it is still a          market of the past five years,     major and life changing purchase      many who purchased homes with      and a buyer should go forward         zero down payments are finding     with an cautiously optimistic but     themselves in exactly that         informed attitude.                    position, basically “under” their                                        loan.                              An important thing to honestly                                           evaluate before you purchase is       Real estate commissions            the average appreciation rates of     traditionally run around six       your local market and your own        percent of a home’s sales price.   personal circumstances.               The seller’s closing costs         Historically, the average             generally amounts to about one     appreciation rate for real            and a half percent. Adding all     property has been roughly 6%;         the costs you would incur if you   however, as the nation is huge        were forced to sell, you can see   your local market appreciation        how this can easily exceed the     rates can obviously vary. Your        first year’s appreciation of your  main objective should be to stay      home. If you made a minimal down   in your house long enough so that     payment (from 3% - 5%), you could  you are not placed in a position      actually have to come up with      where you will have to sell your      cash out of pocket to sell your    home at a loss. If you have to        home. In addition, if the value    sell a home before it has             of the houses in your              neighborhood has dropped              sense to rent for a number of      considerably, you may also find       months before deciding on exactly  yourself owing a deficiency           which neighborhood you desire and  judgment. A deficiency judgment       can afford to live in. Often when  is a judgment for an amount not       people are too hasty to buy a      covered by the value of the           home immediately, they find that   security( in this case your           they might have made a better      house) put up for a loan or           decision if they had waited        installment payments. In general,     awhile and had become more         with the final sale of the house,     familiar with the surrounding      the owner is still left with a        neighborhood and local community.  balance owing on the original         They would have additional         amount of the loan and is liable      leisure time to evaluate home      by law to pay it. While this is       values and find the best bargain   the worst case scenario, it still     in the neighborhood they desired   is prudent to know that such          to live in.                        situations can occur and                                                 realistically evaluate how you        Uncertain or Unstable Job Future   can avoid them.                                                                                                You could have just graduated      The three occasions when it is        from college or you are expecting  much better to hold off on buying     a promotion and a transfer. Or     a home are the following:             perhaps, your company has                                                announced an impending             New to the Area                       "restructuring” or “downsizing”.                                         If any of these apply to your      A very good to reason to delay        situation, it might be best to     buying a home is if you have just     forego buying a home until your    moved to an unfamiliar area or        job and financial situation        region of the country. It makes       stabilizes. It is much easier to   dissolve a lease on an apartment                                         or condo, than to try to sell a       While this certainly isn’t meant   home in a financially difficult       to discourage the prospective      or pressing situation.                buyer, it certainly is intended                                          to inform the buyer of the         Marital Problems                      serious decision they are about                                          to undertake and to evaluate his   While not advertised on national      or her circumstances honestly.     real estate ads, real estate          Taking the time to be forthright   agents are often participants in      at the outset will assure a        the real unfolding life drama of      purchase they will be happy with   clients who have to sell their        in the long run.                   houses due to foreclosure,                                               divorce, and deaths in the               family. One of the saddest            type="text/javascript">                        "FFFFFF";                                                                                                                           google_color_bg = "FFFFFF";                                                                               google_color_link =             type="text/javascript"             "0000FF";                                                                                                                                   google_color_text =             src="http://pagead2.googlesyndica  "3E3F43";                             tion.com/pagead/show_ads.js">                                                                               google_color_url =                                   "3E3F43";                                                                                                                About the Author: Nef Cortez has been a licensed real estate broker and has held various positions in the real estate and mortgage industry for over 25 years. If you would like to read more of Nef's pithy and timely advice visit http://www.nefcortez.com Read more articles by: Nef Cortez Article Source: www.iSnare.com ...Archive >>