Home Mortgage Selection Today
Everywhere you turn lately, you hear a story about someone who lost their home due to their inability to meet their mortgage payments. Unfortunately, more and more of these horror stories are appearing everyday because of an overeager real estate surge that made it possible for almost anyone to purchase a home with creative financing. However, once the creativity is taken out of the financing, you are usually left with a home you can’t afford and no good solution to getting rid of it. HIS CPA P.C. works with potential homeowners in fulfilling their dream of owning a home or refinancing the home they’re in. We take great care in evaluating a person’s ability to purchase a home and to afford the mortgage payments, not just today, but also 2, 10, and 20 years from now. Some things that are crucial to consider when looking for a mortgage company and a home to purchase are:
-Don’t get caught in the hype.
-Under purchase - in other words, don’t purchase what you can afford or a little more, purchase less than you can afford and you allow yourself a cushion should something happen.
-Stay away from promises of creative financing.
-Allow for a cushion - you’ve always heard from every financial advisor around that you should always keep at least a few months rent or mortgage payments stashed away in case of emergency, in today’s volatile job market with downsizing and overseas competition, this has never been more critical.
-Expect Problems - this is where the cushion and the under purchase will really come in handy.
-Be careful in the type of mortgage you are agreeing too - a fixed loan is usually better and not subject to a volatile market where as interest only loans dramatically fluctuate and you should be able to maintain a reserve to pay off the balance in full.
Sphere: Related Content